Crimson Corp. has a component that is a discontinued operation. The component incurred a loss from operations of $40,000. The component was sold with an additional loss of $160,000. The tax rate is 30%. What is the income tax effect for the discontinued operation? A. Income tax expense of $80,000.
B. Income tax benefit of $56,000.
C. Income tax benefit of $80,000.
D. Income tax expense of $56,000.

Income tax benefit of $60,000

Explanation:

Crimson Corp. had a loss from operations Crimson Corp. sold the asset for a loss  Crimson Corp. lost money with the asset  An income tax benefit was generatedBy adding the losses we get $40,000 + $160,000 = $200,000 Income tax rate @ 30% can be calculated as $200,000 * 30% Income tax benefit = $60,000

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?