Esquire Comic Book Company had income before tax of $1,700,000 in 2021 before considering the...
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Esquire Comic Book Company had income before tax of $1,700,000 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 $410,000. The division generated before-tax income from operations from the beginning of the year through disposal of $640,000. 2. The company incurred restructuring costs of $75,000 during the year. Required: Prepare a 2021 income statement for Esquire 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.) $ 1,293,750 ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations Discontinued operations: Income from operations of discontinued component Loss from operations of discontinued component Income tax expense 640,000 640,000 Net income (loss)
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