1.Lupton Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $200000 loss in the year of disposal. The loss on disposal of the segment was $100000. If the tax rate is 30%, and income before income taxes was $1600000,
a. the losses from discontinued operations are reported net of income taxes at $300000.
b. the income tax expense on the income before discontinued operations is $390000.
c. the income from continuing operations is $1120000.
d. net income is $1300000.
