Question

On June 30, 20X8, String Corporation incurred a $220,000 net loss from disposal of a business component. Also, on June 30, 20X8, String paid $60,000 for property taxes assessed for the calendar year 20X8. What amount of the preceding items should be included in the determination of String's net income or loss for the six-month interim period ended June 30, 20X8

Answer 1

Answer:

$190,000

Explanation:

Given that

Net loss from disposal of a business = $220,000

Paid property tax = $60,000

The amount that is included in the determination of net income or loss is given below:-

= Net loss - Paid property tax

= $220,000 - $30,000

= $190,000

In the given question the tax is for full-year so we simply consider for six months tax.