During its 2018 fiscal year, Jacobsen Corporation reported before-tax income of $620,000. This amount does not include the following two items, both of which are considered to be material in amount: The company's income tax rate is 40%. Jacobsen Corporation prepares its financial statements applying U.S. GAAP. In its 2018 income statement, Jacobsen would report income from continuing operations of:

Question

During its 2018 fiscal year, Jacobsen Corporation reported before-tax income of $620,000. This amount does not include the following two items, both of which are considered to be material in amount:  The company's income tax rate is 40%. Jacobsen Corporation prepares its financial statements applying U.S. GAAP. In its 2018 income statement, Jacobsen would report income from continuing operations of:

Quizplus · Accepted Answer

$620,000 + 200,000 = $820,000 × (1 - 0.40) = $492,000. The $200,000 gain is included in income from continuing operations.

During Its 2018 Fiscal Year, Jacobsen Corporation Reported Before-Tax Income