medium · Financial Accounting accounting-cycle-financial-statements
Luna Inc. reported $200,000 of pre-tax income from continuing operations and a $50,000 loss from discontinued operations (pre-tax).
If the tax rate is 25%, what amount should be reported as the 'provision for income taxes' (continuing operations) on the income statement?
- $37,500
- $50,000
- $62,500
- $50,000 as a current liability only.
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