Exercise 2: Discontinued operations (10 points)

Canton Corporation reported the following items in its adjusted trial balance for the year ended December 31, 2024:

Income from continuing operations before income taxes	$ 120,000
Gain on disposal of discontinued component	28,000
Loss from operations of discontinued component	(60,000)

Canton is subject to a 25% tax rate.

Required: Prepare the December 31, 2024, income statement for Canton Corporation, starting with income from continuing operations before income taxes.