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This computes income tax expense, extraordinary gain, net income

Marsh Corporation reported the following pre-tax income statement for the year ended December 31, 2009.

Extraordinary gain $63,000
Income from discontinued operations $42,000
Income from continuing operations $458,000
Tax rate 45%

Enter the appropriate amounts in the following partial income statement:

Income from continuing operations before income taxes $_________

Income tax expense $___________

Income from continuing operations $___________

Discontinued operations, income of $__________, less income tax of $__________

Income before extraordinary gain $___________

Extraordinary gain, $ ___________, less income tax of $ __________

Net income $ _____________

***please show calculations*****

Solution Preview

Marsh Corporation reported the following pre-tax income statement for the year ended December 31, 2009.

Extraordinary gain $63,000
Income from discontinued operations $42,000
Income from continuing operations $458,000
Tax rate 45%

Enter the appropriate amounts in the following partial income statement:

Income from continuing operations before income taxes $__458,000______

Income tax expense $_206,100______ ...

Solution Summary

This solution provides a detailed, step by step explanation of the given accounting problem.

$2.19