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18 January, 04:21

The Cansela Baseball Bat Company reported income before taxes of $375,000. This amount included a $75,000 loss on discontinued operations. The amount reported as income from continuing operations, assuming a tax rate of 40%, is: a. $375,000 b. $270,000 c. $180,000 d. $225,000

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  1. 18 January, 07:00
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    b. $270,000

    Explanation:

    Income before Taxes $375,000

    Add: Loss from discontinuing operations $75,000

    Income from continuing operations before tax $450,000

    Less: Tax 40% (450,000 x 40%) $180,000

    Income from continuing operations $270,000

    So, the correct option is b. $270,000.
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