Why the income statement data are misleading

Reference no: EM131837515

Question: For its fiscal year ending October 31, 2017, Haas Corporation reports the following partial data shown below.

The loss on discontinued operations was comprised of a $50,000 loss from operations and a $70,000 loss from disposal. The income tax rate is 20% on all items.

Instructions: (a) Prepare a correct statement of comprehensive income beginning with income before income taxes.

(b) Explain in memo form why the income statement data are misleading.

Reference no: EM131837515

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