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Provincial Inc. reported the following before-tax income statement items:

Operating income $580,000
Non-operating losses (89,000 )
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:

a. $129,500.
b. $20,500.
c. $14,250.
d. $143,750.

Respuesta :

Answer:

The income tax expense is $122,750

Explanation:

The computation of the amount of income tax expense is shown below:

As we know that

Income before tax = Operating income - non operating losses

= $580,000 - $89,000

= $491,000

Now the income tax expense is

= Income before tax × income tax rate

= $491,000 × 25%

= $122,750

Hence, the income tax expense is $122,750

This is the answer but the same is not provided in the given options

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