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Practice prompt · Q:statement-presentation-comprehensive-income-and-disclosure/practice-pretax-income

Pretax income

Combine nonoperating items without including OCI in pretax income.

Updated Sep 13, 2026 Review due Dec 13, 2026
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A company reports $210 thousand of operating income, $12 thousand of interest income, $30 thousand of interest expense, and a $35 thousand gain on a warehouse sale. It also reports a $9 thousand after-tax OCI loss. What is income before income taxes?

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Answer: c

Pretax income is $227 thousand ($210 + $12 + $35 − $30). The OCI loss does not enter this subtotal.