During the year 2018, Tosco Corporation suffered an $760,000 loss when its factory was destroyed in...
During the year 2018, Tosco Corporation suffered an $760,000 loss when its factory was destroyed in a flood. Assuming the corporate income tax rate is 32%, what amount will Tosco report as a non-recurring loss on its income statement for 2018? Assume floods are not common in this area.
Homework Answers
| Extraordinary loss on income statement will be | ||||
| loss * (1- tax rate) | ||||
| Extraordinary loss = 760000 *(1-0.32) | ||||
| Extraordinary loss = 516800 |
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