Nephi Corporation reported the following income items before tax for the year 2011:
Income from continuing operations before income taxes . . . . . . . . . . . . . . . $260,000
Loss from operations of a discontinued business component . . . . . . . . . . . . 70,000
Gain from disposal of a business component . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Extraordinary gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000
The income tax rate is 35% on all items. Prepare the portion of the income statement beginning with Income from continuing operations before income taxes for the year ended December 31, 2011, after applying proper intraperiod income tax allocation procedures.