Meche company reports income before income taxes of 2500000, Ask an Expert

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MECHE Company reports income before income taxes of $2,500,000 and had an extra-ordinary loss of $800,000. If the tax rate is 35%,

the income before the extraordinary item is $1,625,000.
the extraordinary loss will be reported at $280,000.
the income before the extraordinary item is $1,190,000.
the extraordinary loss would be reported on the income statement at $800,000.

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