Question

Freda's Florist reported the following before-tax income statement items for the year ended December 31, 2021: Operating income $ 268,000 Income on discontinued operations 67,000 All income statement items are subject to a 25% income tax rate. In its 2021 income statement, Freda's separately stated income tax expense and total income tax expense would be:

Answer 1

Freda's separately stated income tax expense and total income tax expense would be $ 83.750

Step-by-step explanation:

Freda's separately stated income tax expense would be tax expense on Operating income i.e 268.000 * 25 % = $ 67.000

Freda's total income tax expense would be: ( 268.000 + 67.000 ) * 25 % = $ 83.750