Beacon Inc

Multiple Choice

Beacon Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $350000 loss in the year of disposal. The loss on disposal of the segment was $150000. If the tax rate is 30% and income before income taxes was $2300000

A) the income tax expense on the income before discontinued operations is $540000.
B) the income from continuing operations is $1610000.
C) net income is $1800000.
D) the losses from discontinued operations are reported net of income taxes at $150000.