Federal Tax Research 10th Edition by Steven Gill, Gerald Whittenburg, Roby Sawyers, Debra Sanders, William Raabe

تمرين 10

Charger Corp. has $500,000 of income from continuing operations and $300,000 of income from discontinued operations. In the prior year, Charger finished the year with a $1.2 million net operating loss that was attributable to losses generated from what is now the discontinued operations and determined that a full valuation allowance was required. In the current year, Charger has determined that no valuation allowance is required based on current-year income and future income projections in excess of $700,000. Assuming a 40 percent tax rate, how should the total tax expense going be allocated between continuing operations and discontinued operations in the current year