In: Accounting
Central City, Inc. has incurred a $50,000 loss on property due to an earthquake. Earthquakes have occurred in this region. What amount will be reported for this loss on company's income statement, assuming a 30% tax rate?
A) $50,000
B) $35,000
C) $15,000
D) Zero, due to the fact that this event is infrequent in nature.
Extra ordinary loss due to an earth quake = $ 50,000 Less: Tax saving @ 30% = $ 15,000 Loss reported in income statement = $ 35000 Answer (b) note: dont give a direct thumbs down if you are not satisfied with the answer . comment your doubts in the command box. if you are satisfied with the answer give thumbs up or like. |