River Inc.had an extraordinary gain equal to $ 15,000 (before taxes).The net income for River Inc.equals $ 48,000 and the tax rate was 30%.What was the value of "income from continuing operations?"

Question

Quizplus · Accepted Answer

To find the income from continuing operations, first calculate the tax on the extraordinary gain: $15,000 * 30% = $4,500. Subtract this tax from the extraordinary gain to get the after-tax extraordinary gain: $15,000 - $4,500 = $10,500. Subtract the after-tax extraordinary gain from the net income to find the income from continuing operations: $48,000 - $10,500 = $37,500.

River IncHad an Extraordinary Gain Equal to $ 15,000 (Before Taxes)