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For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,230,000 before considering the following transactions and events.

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For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,230,000 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 2021. Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2021. The income from operations of the chain from January 1, 2021, through November was $163,000 and the loss on sale of the chain's assets was $306,000. 2. In 2021, Olivo sold one of its six factories for $1,260,000. At the time of the sale, the factory had a book value of $1,130,000. The factory was not considered a component of the entity 3. In 2019. Olivo's accountant omitted the annual adjustment for patent amortization expense of $123,000. The error was not discovered until December 2021. Required: Prepare Olivo's income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2021. Assume an income tax rate of 25%. Ignore EPS disclosures, (Amounts to be deducted should be indicated with a minus sign.) OLIVO CORPORATION Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations before income taxes Income tax expense Income from operations of discontinued component $1,500,000 (375,000) 1 Prev 2 of 4 Next > Required: Prepare Olivo's income statement, beginning with income from continuing operations before taxes, for the year ended December 31 2021 Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) $1,500,000 (375.000) OLIVO CORPORATION Partial lacome Statement For the Year Ended December 31, 2021 Income from continuing operations before income taxes income tax expense Income from operations of discontinued component Income from continuing operations Discontinued operations Loss from operations of discontinued component (150.000 Income tax benefit 37.500 Loss on discontinued operations Net income 1.125.000 (112.500) $1012.500

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