Tom Brown, controller of Microbiology Labs, informs you that the company has sold a segment of its business. Mr. Brown also provides you with the following information for 2018:The following information is not reflected in any of the above amounts:
1. Microbiology Labs is subject to a 35 percent tax rate.
2. During 2018, Microbiology Labs retired outstanding bonds that were to mature in 2020. The company incurred a loss of $80,000 on the retirement of the bonds.
3. Microbiology Labs owns several apple orchards as part of its operations. During 2018, the company€™s apple crop was destroyed by an infestation of a rare insect. This loss totaled $800,000.
4. Two million shares of common stock were outstanding throughout 2018.

REQUIRED:
Prepare an income statement for the year ended December 31, 2018, including the recommended earnings per-share disclosures. In terms of the objectives of financial accounting, comment on the usefulness of each of the different measures of income.

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Continuing Operations Discontinued Segment Sales $10,000,000 $850,000 Cost of goods sold 600,000 2,500,000 Operating expenses Loss on disposal of plant assets Gain on disposal of segment 750,000 100,000 60,000 250,000