Central City, Inc. has incurred a $50,000 loss on property due to an earthquake. Earthquakes have occurred in this region. What amount will be reported for this loss on company's income statement, assuming a 30% tax rate?

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The loss of $50,000 is tax-deductible as it is an unexpected and unintentional event. Therefore, Central City, Inc. can reduce its taxable income by $50,000. The tax rate is 30%, which means that the tax savings for the company would be 30% of $50,000, or $15,000. The amount reported on the income statement would be the net loss after tax, which is $50,000 minus the tax savings of $15,000, or $35,000.