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Discontinued Operations and Intraperiod Income Tax Allocation Nephi Corporation reported the following income items...

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Accounting

Discontinued Operations and Intraperiod Income Tax Allocation
Nephi Corporation reported the following income items before tax for the year 20X1:
Income from continuing operations before income taxes................................................$260,000
Income from operations of a discontinued business component.........................................70,000
Loss from disposal of a business component........................................................................40,000
The income tax rate is 35% on all items. Prepare the portion of the income statement beginning with income
from continuing operations before income taxes for the year ended December 31,20X1 using the following
methods:
a) Traditional Method of Reporting Discontinued Operations
b) New Method of Reporting Discontinued Operations.

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