During calendar 2017, Fraser Corporation reported income from continuing operations of $800,000 (after taxes). In addition, the following information, which has not yet been considered or included in the above figure, has been revealed:

1. In 2017, Fraser adopted the average cost method of inventory valuation. Prior to 2017, the company had used the FIFO method. The change decreases income for 2017 by $50,000 (pre-tax) and the cumulative effect of the change on prior years' income was a $200,000 (pre-tax) decrease.

2. A machine was sold for $140,000 cash during the year at a time when its book value was $100,000. (Depreciation has been correctly recorded.)

3. Fraser decided to discontinue its stereo division in 2017. During the current year, the loss on the disposal of this segment was $150,000 (before applicable taxes).

Required: Present in good form the income statement of Fraser Corporation for 2017 starting with "income from continuing operations." Assume that Scones tax rate is 20% and that 100,000 common shares were outstanding during the year.