Problem related to loss on the income statement

Reference no: EM13128080

Ester's Bunny Barn has experienced a $40,000 loss due to tornado damage to their inventory. Tornados have never before occurred in this area. Assuming that the company's tax rate is 30%, what amount will be reported for this loss on the income statement?

a. $40,000

b. $28,000

c. $12,000

d. $36,000

Reference no: EM13128080

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