MECHE Company reports income before income taxes of $2,500,000 and had an extra-ordinary loss of $800,000. If the tax rate is 35%,

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Income before income taxes minus the extraordinary loss is $2,500,000 - $800,000 = $1,700,000. Applying the tax rate of 35%, the income after taxes is $1,105,000. Adding the extraordinary loss of $800,000, the final income before extraordinary loss is $1,625,000.

MECHE Company Reports Income Before Income Taxes of $2,500,000 and Had