The ledger of Coquitlam Corporation at December 31, 2024, contains the following summary data: 

Cash dividends—common ..........................................................................................................    $ 125,000 

Cash dividends—preferred ...............................................................................................................   55,000 

Cost of goods sold ............................................................................................................................   888,000 

Sales ................................................................................................................................................   1,750,000 

Operating expenses .........................................................................................................................   451,000 

Other comprehensive income—holding gain on equity investments (before income tax)..... $ 47,000 

Other expenses ....................................................................................................................................  18,000 

Retained earnings, January 1, 2024 ..................................................................................................642,000

Your analysis reveals the following additional information: 

1. The company has a 25% income tax rate. 

2. The ceramics division was discontinued on July 31. The loss from operations for the division up to that day was $150,000 before income tax. The division was sold at a pre-tax gain of $70,000.  

3. There were 200,000 common and 100,000 noncumulative preferred shares issued on December 31, 2023, with no changes during the year. 

Instructions 

a. Prepare a multiple-step income statement for the year. 

b. Prepare a statement of comprehensive income as a separate statement. 

What are the characteristics of a component of an entity? What information does profit (loss) from continuing operations provide to a user? What information does profit (loss) from discontinued operations provide to a user?