tax rate estimation

问题如下：

Information about a company’s historical performance for the last two years and additional information are summarized in the following table.

Industry sales are expected to increase 5%, and the company expects to maintain its current market share and gross profit margin. Operating expenses are not expected to change with the increase in sales.

The company sold off its portfolio of marketable securities in 2012 and used the funds to purchase operating assets. In 2012, the company announced its intention to sell off a division, and that sale was completed in 2013. The results from the division and the gain or loss incurred on the sale are classified as discontinued operations.

The projected net income (in thousands) for 2014 is closest to:

选项：

A.$745.00 B.$836.00 C.$635.00

解释：

The loss (gain) from discontinued operations and the gain on the sale of the portfolio investments should not be included in the forecast because they are not recurring items. First, the recurring operating margin before tax should be forecasted, noting that the operating costs are fixed costs, and then the tax rate from 2013 should be used to determine net income.