2. Selected account balances from the adjusted trial balance for Harbor Corp. as of its calendar year-end December 31 follow.

a. Accumulated depreciationBuildings		$ 400,000
b. Interest revenue		20,000
c. Net sales		2,640,000
d. Income tax expense	$ ?
e. Loss on hurricane damage	48,000
f. Accumulated depreciationEquipment		220,000
g. Other operating expenses	328,000
h. Depreciation expenseEquipment	100,000
i. Loss from settlement of lawsuit	36,000
j. Gain from settlement of lawsuit		68,000
k. Loss on sale of equipment	24,000
l. Loss from operating a discontinued segment (pretax)	120,000
m. Depreciation expenseBuildings	156,000
n. Correction of overstatement of prior year's expense (pretax)		48,000
o. Cost of goods sold	1,040,000
p. Loss on sale of discontinued segment's assets (pretax)	180,000
q. Accounts payable		132,000

Answer each of the following questions by providing supporting computations.

1. Assume that the company's income tax rate is 25% for all items. Identify the tax effects and after-tax amounts of the three items labeled pretax.

2. What is the amount of income from continuing operations before income taxes? What is the amount of income tax expense? What is the amount of income from continuing operations?

3. What is the total amount of after-tax income (loss) associated with the discontinued segment?

4. What is the amount of net income for the year?