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E Comic Book Company had income before tax of $1,950,000 in 2021 before considering the...

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Accounting

E Comic Book Company had income before tax of $1,950,000 in 2021 before considering the following material items:

  1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $435,000. The division generated before-tax income from operations from the beginning of the year through disposal of $690,000.
  2. The company incurred restructuring costs of $60,000 during the year.

Required: Prepare a 2021 income statement for E beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)

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