Information for Hobson Corp. for the current year ($ in millions): The applicable enacted tax rate for all periods is 40%.
-How should Hobson report tax on the discontinued operation?

Name: Information for Hobson Corp. for the current year ($ in millions): The applicable enacted tax rate for all periods is 40%. -How should Hobson report tax on the discontinued operation?
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Question

Information for Hobson Corp. for the current year ($ in millions):  The applicable enacted tax rate for all periods is 40%. 
-How should Hobson report tax on the discontinued operation?

Quizplus · Accepted Answer

The loss on discontinued operations is reported in the income statement net of $12 tax benefit [$30 - ($30 x 40%) = $18].