Arreaga Corp. has a tax rate of 40 percent and income before non-operating items of
$464,000. It also has the following items (gross amounts).
Unusual loss $ 74,000
Extraordinary loss 202,000
Gain on disposal of equipment 16,000
Change in accounting principle
increasing prior year's income 106,000
What is the amount of income tax expense Arreaga would report on its income
statement?
a. $185,600
b. $162,400
c. $198,400
d. $124,000
Answers: 3
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Answers: 3
Arreaga Corp. has a tax rate of 40 percent and income before non-operating items of
$464,000. It al...
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