Ex 4-2CLASS PRACTICE:DISCONTINUED OPERATIONSThe Bilibong Company had three operating divisions, each of which qualifies as a separate component.The sports equipment was sold on December 31, 20xx resulting in a before-tax gain of $300,000The division incurred before-tax operating losses of $380,000 from the beginning of the year through December 31Bilibong's after-tax income from its continuing operations is $500,000.The income tax rate is 40%.Prepare an income statement for 20xx beginning with "income from continuing operations."