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In 2017, the Kross Company reports income from continuing operations before income tax of $500,000....

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Accounting

In 2017, the Kross Company reports income from continuing operations before income tax of $500,000. Additional transactions not considered in the $500,000 are as follows.

  • In 2017, Kross Corp. had a gain on the sale of equipment of $50,000 before taxes.
  • The company discontinued operations of one of its subsidiaries during the current year . Assume that this transaction meets the criteria for discontinued operations. The gain from operations of the discontinued subsidiary was $100,000 before taxes; the loss from disposal of the subsidiary was $30,000 before taxes.

Analyze the above information and answer the following questions. Assume a total effective tax rate of 40% on all items.

a) What is income/(loss) from continuing operations for Kross in 2017?

b) What is net income/(loss) from discontinued operations for Kross in 2017?

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