Dylan Karraker Company has income from continuing operations of \($240,000\) for the year ended December 31, 2002. It also has the following items (before considering income taxes): ( 1 ) an extraordinary fire loss of \($60,000\), (2) a gain of \($40,000\) from the discontinuance of a division, which includes a \($1\) 10,000 gain from the operation of the division and a \($70,000\) loss on its disposal, and (3) a cumulative change in accounting principle that resulted in an increase in the prior year's depreciation of \($30,000\). Assume all items are subject to income taxes at a 30% tax rate.

Instructions
Prepare Dylan Karraker Company's income statement for 2002, beginning with "Income from continuing operations."