The following accounts are extracted from the worksheet of X Company onDecember 31, 2020:Income frem eentinuing operations after taxes: $2,000,000• During the year, the company suffered from abnonmal and infrequenthurricane damages that had resulted in a $60,000 pretax lossDuring the yeaI also, the company stopped the activities of its REWsegment which had resulted in a pretax operating loss of S100,000 anda net of tax loss on di sposal $20,000Tax Rate was 30% Based on the data above, the net extraordinary loss was:$60,000O $42,000$18,000None of the above

Answer) Calculation of Net Extraordinary Loss Net Extraordinary Loss = Loss Due to Hurricane – Tax…

The following accounts are extracted from the worksheet of X Company on December 31, 2020: Income frem eontinuing operati ons after taxes: $2,000,000 • During the year, the company suffered from abnormal and infrequent hurricane damages that had resulted in a $60.000 pretax loss • During the year also, the company stopped the activities of its REW segment which had resulted in a pretax operating loss of $100,000 and a net of tax loss on di sposal $20,000 Tax Rate was 30%

The following accounts are extracted from the worksheet of X Company on December 31, 2020: Income frem eontinuing operati ons after taxes: $2,000,000 • During the year, the company suffered from abnormal and infrequent hurricane damages that had resulted in a $60.000 pretax loss • During the year also, the company stopped the activities of its REW segment which had resulted in a pretax operating loss of $100,000 and a net of tax loss on di sposal $20,000 Tax Rate was 30%

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 17P

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