check my answer 1) White Lightning Inc. reported income from continuing operations before income taxes of $626,000 for the year ended December 31, 2004. During October of 2004, White Lightning elected to phase out a segment of its business. That segment reported a net loss prior to the measurement date of $74,000. White Lightning expects to incur additional losses of $35,000 during the phase-out period. Management estimates a loss on the sale of the assets associated with the segment of $85,000. The income tax rate for White Lightning is 30 percent. Prepare the portion of the income statement beginning with Income from continuing operations before income tax for the year ended December 31, 2004. . Income Statement For the Year Ended December 31, 2004 Income from continuing operations before income tax.................. $ 626,000 Income tax expense............................................................................... 187,800 Income from continuing operations.................................................... $ 438,200 Discontinued operations: Loss from operations of discontinued business segment (net of income tax savings of $22,200)...................................... (51,800) Loss on disposal of business segment (net of income taxes of $36,000).......................................................................................... (84,000 ) Net Income............................................................................................. $ 302,400