3 16.5/22 points awarded Esquire Comic Book Company had income before tax of $1.900.000 in 2016 before considering the following material items: 1 Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $440,000. The division generated before tax income from operations from the beginning of the year through disposal of $680,000. Neither the loss on disposal nor the operating income is included in the $1,900,000 before-tax income the company generated from its other divisions. 2. The company incurred restructuring costs of $95.000 during the year Required: Prepare a 2016 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 40%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) Scored eBook Print References ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2016 Income from continuing operations $ 1.083.000 Discontinued operations gain (los) Income tax expense (433.200) X Income from operations of discontinued 240.000 component > Income on discontinued operations Net Income textes sont court sls (199 200 626.400 3 Bents