On June 30,20X0,Bow Corporation incurred a $150,000 net loss from disposal of a business component.Also on June 30,20X0,Bow paid $50,000 for property taxes assessed for the calendar year 20X0.What amount of the preceding items should be included in the determination of Bow's net income or loss for the six-month interim period ended June 30,20X0?
A)$100,000
B)$150,000
C)$175,000
D)$200,000

Question

Quizplus · Accepted Answer

The $150,000 net loss from disposal of a business component should be included in full because it directly affects the period's net income or loss. The $25,000 for property taxes (half of the $50,000 for the six-month period) should also be included, totaling $175,000.

On June 30,20X0,Bow Corporation Incurred a $150,000 Net Loss from Disposal