For its fiscal year ending October 31, 2017, Haas Corporation reports the following partial data shown below.

Explain in memo form why the income statement data are misleading.

For its fiscal year ending October 31, 2017, Haas Corporation reports the following partial data shown below. Income before income taxes Income tax expense (20% $420,000) Income from continuing operations Loss on discontinued operations Net income $540,000 84,000 456,000 120,000 $336,000 The loss on discontinued operations was comprised of a $50,000 loss from operations and a $70,000 loss from disposal. The income tax rate is 20% on all items. Explain in memo form why the income statement data are misleading