Question

During its 2021 fiscal year, Jacobsen Corporation reported before-tax income of $624,000. This amount does not include the following two items, both of which are considered to be material in amount: Unusual gain$204,000 Loss on discontinued operations(304,000)The company's income tax rate is 25%. Jacobsen Corporation prepares its financial statement applying International Financial Reporting Standards (IFRS). In its 2021 income statement, Jacobsen would report income from continuing operations of:

Answer 1

the income from continuing operations reported is $777,000

Step-by-step explanation:

The calculation fo the income from continuing operations reported is shown below:

= Before tax income + unusual gains × (1 - tax rate)

= $624,000 + $204,000 × (1 - 0.25)

= $624,000 + $153,000

= $777,000

hence, the income from continuing operations reported is $777,000