Esquire Comic Book Company had income before tax of $1,250,000 in 2021 before considering the following material items: 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 $365,000. The division generated before-tax income from operations from the beginning of the year through disposal of $550,000. The company incurred restructuring costs of $80,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)

ESQUIRE COMIC BOOK COMPANY

Partial Income Statement

For the Year Ended December 31, 2021

Income from continuing operations

Discontinued operations:

Income (loss) on discontinued operations0

Net income (loss)