Esquire Comic Book Company had income before tax of $1,850,000 in 2013 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 $435,000. The division generated before-tax income from operations from the beginning of the year through disposal of $670,000. Neither the loss on disposal nor the operating income is included in the $1,850,000 before-tax income the company generated from its other divisions.

2.

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

Required:

Prepare a 2013 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 40%. Ignore EPS disclosures. (Amount to be deducted should be indicated with a minus sign.)