On June 30, Bridgeport Corp. discontinued its operations in Mexico. During the year, the operating income was $204,000 before taxes. On September 1, Bridgeport disposed of the Mexico facility at a pretax loss of $672,000. The applicable tax rate is 30%. Show the Income from operations of Mexican Facility section of Bridgeport's income statement.
On June 30, Bridgeport Corp. discontinued its operations in Mexico. During the year, the operating income was $204,000 before taxes. On September 1, Bridgeport disposed of the Mexico facility at a pretax loss of $672,000. The applicable tax rate is 30%. Show the Income from operations of Mexican Facility section of Bridgeport's income statement.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 24CE
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On June 30, Bridgeport Corp. discontinued its operations in Mexico. During the year, the operating income was $204,000 before taxes. On September 1, Bridgeport disposed of the Mexico facility at a pretax loss of $672,000. The applicable tax rate is 30%. Show the Income from operations of Mexican Facility section of Bridgeport's income statement.
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Transcribed Image Text:On June 30, Bridgeport Corp. discontinued its operations in Mexico. During the year, the operating income was $204,000 before taxes.
On September 1, Bridgeport disposed of the Mexico facility at a pretax loss of $672,000. The applicable tax rate is 30%. Show the
Income from operations of Mexican Facility section of Bridgeport's of income statement.
Discontinued Operations
Loss on Disposal of Mexico Facility
Gain on Disposal of Mexico Facility
BRIDGEPORT CORP.
Partial Income Statement
LA
-672000
201600
LA
-470400
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