Cathy Company sold a segment of its business at a gain of $150,000 on December 31, 2021. Cathy included the $360,000 earned by the discontinued segment prior to its disposal in its $1,750,000 operating income for fiscal year ending 12/31/2021. Assume Cathy' tax rate is 40%. The TOTAL (net of tax) amount that should be shown for "Discontinued Operations" on Cathy's 2021 income statement is: O $834,000 O $357,000 O $216,000 O $306,000 O $90,000
Cathy Company sold a segment of its business at a gain of $150,000 on December 31, 2021. Cathy included the $360,000 earned by the discontinued segment prior to its disposal in its $1,750,000 operating income for fiscal year ending 12/31/2021. Assume Cathy' tax rate is 40%. The TOTAL (net of tax) amount that should be shown for "Discontinued Operations" on Cathy's 2021 income statement is: O $834,000 O $357,000 O $216,000 O $306,000 O $90,000
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 29P
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Transcribed Image Text:Cathy Company sold a segment of its business at a gain of $150,000 on
December 31, 2021. Cathy included the $360,000 earned by the
discontinued segment prior to its disposal in its $1,750,000 operating
income for fiscal year ending 12/31/2021.
Assume Cathy' tax rate is 40%. The TOTAL (net of tax) amount that
should be shown for "Discontinued Operations" on Cathy's 2021 income
statement is:
$834,000
$357,000
O $216,000
O $306,000
O $90,000
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