Esquire Comic Book Company had income before tax of $1,000,000 in 2021 before considering the following material items:

1. Esquire 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 $340,000. The division generated before-tax income from operations from the beginning of the year through disposal of $500,000.
2. The company incurred restructuring costs of $80,000 during the year.

Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures.

$ 690,000 ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations Discontinued operations: Income from operations of discontinued component Income tax expense Loss from operations of discontinued component Income (loss) on discontinued operations Net income (loss) 160,000 (40,000) 120,000 240,000 810,000 $