Esquire Comic Book Company had income before tax of $1,850,000 in 2024 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 $425,000. The division generated before-tax income from operations from the beginning of the year through disposal of $670,000.

2. The company incurred restructuring costs of $90,000 during the year.

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

Note: Amounts to be deducted should be indicated with a minus sign.

ESQUIRE COMIC BOOK COMPANY
Partial Income Statement
For the Year Ended December 31, 2024
Income from continuing operations
Discontinued operations:
Income (loss) on discontinued operations		0
Net income (loss)