During $2025,$ Sheridan Company reported income of $$1,548,000$ before income taxes and realized a gain of $$405,200$ on the disposal of assets related to a discontinued operation. The criteria for classification as a discontinued operation is appropriate for this sale. The income is subject to income taxation at the rate of $34\%.$ The gain on the sale of the plant is taxed at $30\%.$ Indicate an appropriate presentation of these items in the income statement.

SHERIDAN COMPANY

Partial Income Statement

For the Year Ended December $31,2025$

Income before Income Tax

Income Tax

Income from Continuing Operations

Discontinued Operations$-$Gain on Disposal of Assets

$

Income before Income Tax