Provincial Inc.reported the following before-tax income statement items:

Provincial has a 30% income tax rate.
Provincial would report the following amount of income tax expense as a line item in the income statement:

Question

Provincial Inc.reported the following before-tax income statement items:

Provincial has a 30% income tax rate.
Provincial would report the following amount of income tax expense as a line item in the income statement:

Quizplus · Accepted Answer

To calculate the income tax expense, we need to multiply the before-tax income by the income tax rate.

Income tax expense = Before-tax income x Income tax rate

Income tax expense = $600,000 x 30% = $180,000

Therefore, the correct answer is B) $180,000.

Provincial Inc.reported the Following Before-Tax Income Statement Items