Question

Freda's Florist reported the following before-tax income statement items for the year ended December 31, 2021: Operating income $ 200,000 Income on discontinued operations 80,000 All income statement items are subject to a 25% income tax rate. In its 2021 income statement, Freda's separately stated income tax expense and total income tax expense would be: $70,000 and $70,000, respectively. O $50,000 and $50,000, respectivelyn $50,000 and $70,000, respectively. $70,000 and $50,000, respectively.

Answer 1

Calculation of income tax expense and total income tax expense tax rate Income tax expense = Operating income =200000*25% $50,000 Total income tax expense =(Operating income + Income on discontinued operations)* Tax rate =(200000+80000)*25% $70,000 Answer is : $50,000 and $70,000, respectively