1. Silver Gym had two different kinds of business under operation. One kind of business was discontinued and sold at a gain. How should this gain be reported? A. As "extraordinary gain." B. As "gain from discontinued operation" C. Both of the above D. None of the above. 2. The Robinson suffered damage from a hurricane and had a loss of $10,000. Assuming a tax rate of 10%, what is the effect the loss net-of-tax? A. $1,000 gain B. $9,000 gain C. $11,000 gain D. $9,000 loss. 3. A company had Service Revenue of $120,000, wages expense of $40,000, interest revenue of $3,000, loss on discontinued operations of $12,000, and a tax rate of 20%. What is the amount of income from continuing operations (After tax) ? A. $56,800 B. $60,000 C. $66,400 D. $83,000 E. 80,000

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Business

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3 January, 07:48

1. Silver Gym had two different kinds of business under operation. One kind of business was discontinued and sold at a gain. How should this gain be reported? A. As "extraordinary gain." B. As "gain from discontinued operation" C. Both of the above D. None of the above. 2. The Robinson suffered damage from a hurricane and had a loss of $10,000. Assuming a tax rate of 10%, what is the effect the loss net-of-tax? A. $1,000 gain B. $9,000 gain C. $11,000 gain D. $9,000 loss. 3. A company had Service Revenue of $120,000, wages expense of $40,000, interest revenue of $3,000, loss on discontinued operations of $12,000, and a tax rate of 20%. What is the amount of income from continuing operations (After tax) ? A. $56,800 B. $60,000 C. $66,400 D. $83,000 E. 80,000

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Avery Cuevas · Answer 1

Answer 1:

Correct option is B.

This gain should be reported as a gain from discontinued operation.

Answer 2:

Correct option is D.

The effect the loss net-of-tax is $9000 loss.

Answer 3:

Correct option is C.

The amount of income from continuing operations (After tax) is $66,400