Question

In: Accounting

isty Company reported the following before-tax items during the current year: Sales revenue $ 760 Selling...

isty Company reported the following before-tax items during the current year:

Sales revenue $ 760
Selling and administrative expenses 410
Restructuring charges 60
Loss on discontinued operations 80


Misty's effective tax rate is 40%.

What is Misty's income from continuing operations?

Multiple Choice

$290.

$370.

$174.

$390.

Solutions

Expert Solution

Ans: $ 210

Solution: income from continuing operations=(760-410)x (1-tax rate)

                                                                                 = $ 350 * 0.60

                                                                                 = $ 210

                 

ekkarill92 answered 10 months ago
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