For 2008, Silvertip Construction, Inc. reported income from continuing operations (after tax) of \($1,650,000\) before considering the following information. On November 15, 2008, the company adopted a plan to dispose of a component of the business. This component qualifies for discontinued operations treatment under SFAS No. 144. During 2008, the component had pretax operating losses of \($95,000\). The component's assets have a book value of \($760,000\) on December 31, 2008. A recent market value analysis of these assets placed their estimated selling price at \($735,000\), less a 6% brokerage commission. Management appropriately determines that these assets are impaired and expects to find a buyer for the component and complete the sale early in 2009.
Required:
Prepare a partial income statement for Silvertip including EPS disclosures for the year ended December 31, 2008. Begin at income from continuing operations. Assume a 35% income tax rate and 1,000,000 shares of outstanding common stock.