Question: The following income statement does not reflect intraperiod tax allocation. INCOME STATEMENT For the Fiscal Year Ended March 31, 2018 ($ in millions) Revenues $
The following income statement does not reflect intraperiod tax allocation.
| INCOME STATEMENT For the Fiscal Year Ended March 31, 2018 ($ in millions) | ||||
| Revenues | $ | 1,055 | ||
| Cost of goods sold | (440 | ) | ||
| Gross profit | 615 | |||
| Operating expenses | (210 | ) | ||
| Income tax expense | (116 | ) | ||
| Income before discontinued operations | 289 | |||
| Loss from discontinued operations, net of tax | (115 | ) | ||
| Net income | $ | 174 | ||
The companys tax rate is 40%. Required: Recast the income statement to reflect intraperiod tax allocation. (Loss amounts should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
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