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Item 1 Item 1 Provincial Inc. reported the following before-tax income statement items: Operating income $ 530,000 Non Operating losses (95,000 ) Provincial has a 25% income tax rate. Provincial would report the following amount of income tax expense as a separately stated line item in the income statement: Multiple Choice $108,750. $23,750. $121,750. $13,000.

Respuesta :

Answer:

$108,750

Explanation:

Data provided in the question

Operating income = $530,000

Non operating losses = -$95,000

Income tax rate = 25%

So by considering the above information, the income tax expense is

Income tax expense = (Operating income - non operating losses ) × income tax rate

= ($530,000 - $95,000) × 25%

= $435,000 × 25%

= $108,750

     

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