During 2017, Pharoah Company reported income of $1,483,000 before income taxes and realized a gain of $475,700 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.

During 2017, Pharoah Company reported income of $1,483,000 before income taxes and realized a gain of $475,700 on the disposal of assets related nued 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. PHAROAH COMPANY Partial Income Statement T For the Year Ended December 31, 2017 A T Income before income tax 1500000 K&T T Income tax -510000 Income from continuing operations 990000 Income from continuing operations 450000 Add Add Income tax Income tax -315000 315000 T Net income/ (Loss) 315000.00