Question

Kandy Kane Corporation has income before taxes of $400,000 and a loss from discontinued operations pretax of $100,000. If the income tax rate is 25% on all items, the income statement should show income tax expense of

Answer 1

The income tax expense = $100000

Step-by-step explanation:

Below is the given values:

Income before the taxes = $400000

Loss discontinued = $100000

Income tax rate = 25%

In order to calculate the income tax expense, just find the 25% of the income before tax and the resulting answer will be the income tax expense.

The income tax expense = 25% x 400000

The income tax expense = $100000