Rasmus Company has income before taxes of $360,000 and a discontinued operations loss of $80,000. If the income tax rate is 30% on all items, the income statement should show income from continuing operations and a discontinued operations loss, respectively, of

Question

Quizplus · Accepted Answer

Income from continuing operations = $360,000 - (30% x $360,000) = $252,000
Discontinued operations loss = $80,000 - (30% x $80,000) = $56,000
Therefore, the income statement should show income from continuing operations of $252,000 and a discontinued operations loss of $56,000.

Rasmus Company Has Income Before Taxes of $360,000 and a Discontinued