The following income statement does not reflect intraperiod tax allocation.
Required:
Recast the income statement to reflect intraperiod tax allocation.
INCOME STATEMENT
For the Fiscal Year Ended March 31, 2018
($ in millions)
Revenues.............................................................$830
Cost of goods sold.................................................(350)
Gross profit............................................................480
Operating expenses.................................................(180)
Income tax expense..................................................(86)
Income before discontinued operations...........................214
Loss from discontinued operations................................(85)
Net income...........................................................$129
The company's tax rate is 40%.