Exercise 4-7 Income statement presentation; discontinued operations; ing costs [LO4-1, 4-3, 4-4 Esquire Comic Book Company had income before tax of $1,450,000 in 2018 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 iples. The before-tax loss on disposal was $395,000. The division generated before-tax income from operations from the beginning of the year through disposal of $590,000. Neither the loss on disposal nor the operating income is included in the $1,450,000 before-tax income the company generated from its other divisions. 2. The company incurred restructuring costs of $50,000 during the year Required: Prepare a 2018 income statement for Esquire beginning Ignore EPS disclosures. (Amounts to be deducted should be indicated with a mnus sign.) with income from continuing operations. Assume an income tax rate of 40%. ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended D r 31, 2018 operations gain (loss)