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 separate item in the income statement:

Question

Quizplus · Accepted Answer

To calculate the income tax expense, we need to multiply the before-tax income by the income tax rate of 30%. Therefore, Income tax expense = $600,000 x 30% = $180,000. This amount would be reported as a separate item in the income statement. Option B is the correct answer.