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

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

 

Misty's effective tax rate is 25%.
 
What is Misty's income from continuing operations?

Multiple Choice

$720.


$525.


$510.



$590.

 Answer

 $510.

Explanation

($1,500 − $800 − $20) x (1 − 0.25) = $510

Thanks