Misty company reported the following before-tax items during the current year: sales revenue $ 600selling and administrative expenses 250restructuring charges 20loss on discontinued operations 50misty's effective tax rate is 40%.what is misty's income from continuing operations?
(a) $198
(b) $330.(c) $210.(d) $360.

                                                               $

Sales revenue                                      600

Selling and administrative expenses (250)

Restructuring charges                          (20)

Profit before tax                                    330

Tax @ 40%                                             132

Income from continuing operations     198

The correct answer is A

Explanation:

Income from continuing operation is the excess of sales revenue over selling and administrative expenses, restructuring charges and tax.

Tax is 40% of profit before tax.

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