Claytons Dog Supplies has income before taxes of 550000 and

Clayton\'s Dog Supplies has
income before taxes of $550,000 and an extraordinary loss of $170,000. If the
income tax rate is 30% on all items, the income statement should show income
before irregular items and an extraordinary loss, respectively, of

Solution

Income before irregular items = 550000*0.7 = $385000

Extraordinary loss = 170000* 0.7 = $119000