The following items appeared in the year-end trial balance for the brown coffee company: debits credits revenues $ 600,000 operating expenses $ 420,000 income on discontinued operations 200,000 restructuring costs 100,000 interest expense 20,000 gain on sale of investments 30,000 income tax expense has not yet been accrued. the company's income tax rate is 40%. what amount should be reported in the company's income statement as income from continuing operations?

What amount should be reported in the company's income statement as income from continuing operations?

$54000

Explanation:

revenue                           600000

Operating expenses  -420000

Interest expense           -20000

gain on sale of investments30000

restructuirng cost              -100000

Income                                90000

Tax rate                                   40%

tax expense                     36000

Net income                 54000

The amount that should be reported in the company's income statement as income from continuing operations is $54,000

Explanation:

ACCOUNT          DEBIT       CREDIT

Debit Credit Revenues            600,000

Operating Expenses        420,000

Income of Discontinued Operations          200,000  

Restructuring Cost                 100,000

Interest Expense          20,000

Gain on Sale of Investment            30,000

Income Tax Expense         36,000

TOTAL                   $576,000       $830,000

NOTE

Taxable Income 830,000 – 200,000 - 540,000 =90,000

Income tax  Expense =90,000*0.4 = $36,000  (the company income tax rate is 40%)

The $200, 000 was subtracted from the total income of $830,000  before the income tax expense was calculated since it was income earned from discontinued operation.

Total Income = 830, 000 – 576,000 = $254,000

Income from Continuing Operations = 254,000 – 200,000 (Income from discontinued operations) = $54,000  

Therefore the amount that should be reported in the company's income statement as income from continuing operations is $54,000

mcdonald's fast-food restaurants have a well-designed training program for all new employees. each new employee is supposed to learn how to perform standardized tasks required to maintain mcdonald's service quality. due to labor shortages in some areas, new employees begin work as soon as they are hired and do not receive any off-the-job training. this nonconformity to standards creates control loss.

answer; buying the bill at a discount from the face value to be received at maturity;