Operations before income taxes


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Cendant Corporation's results for the year ended December 31, 2011, include the following material items: Sales revenue - $6,200,000 Cost of good sold - 3,800,000 Selling and Admin. expenses - 1,300,000 Loss on sales of investments - 200,000 Loss on discontinued operations - 500,000 Loss from expropriation (unusual and infrequent event) - 800,000 Restructuring costs - 80,000 Overstatement of amortization expense in 2010 caused by mathematical error - 60,000 Cendent Corporation's income from continuing operations before income taxes for 2011 is:

a. 900,000

b. 880,000

c. 820,000

d. 320,000

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Accounting Basics: Operations before income taxes
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