Following a successful trading period, Tom's Inc. started an aviation division. Its only product - the Wood Pelican - was not a big seller. (Tom's research failed to discover that airlines would be reluctant to purchase wooden aircraft.) As such, operations of the aviation division lost $750,000 in the year. Mike decided to shut down the division, and spent $150,000 to dispose of his aviation equipment.

Luckily, the division's income before tax was $1, 400,000. Tom has a 29% tax rate, and there are 150,000 common shares issued and outstanding. In addition, Tom's Inc. has 20,000 $2 cumulative preferred shares outstanding. There are no preferred dividends in arrears.

Required:

Compile a partial statement of income for Tom's Inc. following IFS. Be sure to show continuing operations, discontinued operations, and EPS calculations.