Gleeson Industries consists of four separate divisions: compressed wood products, chemicals, stone products, and plastics. On March 15, 2010, Gleeson sold the chemicals division for $625,000 cash. Financial information related to the chemicals division follows:
If the income tax rate for the company is 35%, what amount of income tax liability on the disposal of the business segment will be recognized?
a. $218,750
b. $61,250
c. $5,250
d. $157,500

Question

Gleeson Industries consists of four separate divisions: compressed wood products, chemicals, stone products, and plastics. On March 15, 2010, Gleeson sold the chemicals division for $625,000 cash. Financial information related to the chemicals division follows:
  If the income tax rate for the company is 35%, what amount of income tax liability on the disposal of the business segment will be recognized? 
a. $218,750
b. $61,250
c. $5,250
d. $157,500

Quizplus · Accepted Answer

The Answer of Gleeson Industries consists of four separate divisions: compressed wood products, chemicals, stone products, and plastics. On March 15, 2010, Gleeson sold the chemicals division for $625,000 cash. Financial information related to the chemicals division follows:
  If the income tax rate for the company is 35%, what amount of income tax liability on the disposal of the business segment will be recognized? 
a. $218,750
b. $61,250
c. $5,250
d. $157,500

Gleeson Industries Consists of Four Separate Divisions: Compressed Wood Products