Misty Company reported the following beforetax items during

Misty Company reported the following before-tax items during the current year: Sales revenue Selling and administrative expenses Restructuring charges Loss on discontinued operations $670 320 30 60 Misty\'s effective tax rate is 40%. What is Misty\'s net income for the current year?

Solution

Income from continuing operations before taxes 320 =670-320-30 Income tax expense 128 =320*40% Income from continuing operations 192 Loss on discontinued operations -36 =60*(1-0.4) Net income 156