Diamond Comic Book Company had income before tax of $1,056,000 in year 1 before considering the following material items:

1. Diamond 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 $324,800. The division generated before-tax income from operations from the beginning of the year through disposal of $464,000.

2. The company incurred restructuring costs of $75,000 during the year.

Prepare a year 1 income statement for Diamond beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures.