Provincial Inc. reported the following before-tax income statement items:

 Provincial Inc. reported the following before-tax income statement items:

 Provincial has a 25% income tax rate.
 
Provincial would report the following amount of income tax expense as a separately stated line item in the income statement:

Multiple Choice

$24,500.


$120,500.



$133,250.


$12,750. 

Answer

$120,500.

Explanation

($580,000 − $98,000) × 25% = $120,500

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