Esquire Comic Book Company had income before tax of $2,000,000 in 2021beforeconsidering 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 $440,000. The division generated before-tax income from operations from the beginning of the year through disposal of $700,000.
2. The company incurred restructuring costs of $65,000 during the year.

Required:

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