Buy n Large has 100,000 shares of common stock outstanding. In 2020, the company had pretax income from continuing operations of $1,400,000. The following additional items are not included in this amount.

1. In 2020, Buy n Large sold equipment for $40,000. The machine had originally cost $80,000 and had accumulated depreciation of $36,000. The company often sells equipment that it has used in its operations.

2. An earthquake affected the plant in Taiwan causing damage of $100,000.

3. The company wrote down obsolete inventory and incurred a loss of $65,000.

4. The company has two components, a yoga props division and household appliances division. These divisions have distinguishable operations. In 2020, Buy n Large decided to sell its household appliances division. The division sold for $500,000 and the book value of its assets was $750,000. The 2020 income from operating the division was $120,000.

5. Buy n Larges tax rate for 2020 is 40%.

Directions: Create income statement by filling out the table.

Income from continuing operations, as restated (please show your calculation in a footnote)*	$
Income tax expense	$
Income from continuing operations, after tax	$
Discontinued Operations:
Income (loss) from discontinued operations, including disposal gain (loss) of _$____________	$
Income tax benefit	$
Income from Discontinued Operations, after tax	$
Net Income	$
EPS
From continuing operations	$
From discontinued operations	$
Net income	$