For the year ending December 31, 2018, Benson Corporation had income from continuing operations before taxes of $1,250,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material.

Problem 4-3 Income statement presentation; Discontinued operations; Accounting error [LO4-4, 4-5] For the year ending December 31, 2018, Benson Corporation had income from continuing operations before taxes of $1,250,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material 1. In November 2018, Benson sold its Pancake Village restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2018. The income from operations of the chain from January 1, 2018, through November was $165,000 and the loss on sale of the chain's assets was $310,000 was not considered a component of the entity until December 2018 2. In 2018, Benson sold one of its six factories for $1,300,000. At the time of the sale, the factory had a book value of $1,150,000. The factory 3. In 2016, Benson's accountant omitted the annual adjustment for patent amortization expense of $125,000. The error was not discovered Required Prepare Benson's income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2018 Assume an income tax rate of 20%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) BENSON CORPORATION Partial Income Statement For the Year Ended December 31, 2018 Income from continuing operations before income taxes ncome tax expense $1,400,000 (280,000) Income from continuing operations Discontinued operations 1,120,000 Loss from operations of discontinued component Income tax benefit Loss on discontinued operations et income $1,120,000