Showing posts with label Misty's income from continuing operations. Show all posts
Showing posts with label Misty's income from continuing operations. Show all posts

Thursday, 29 October 2020

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