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I want do know if im doing this right Esquire Comic Book Company had income before tax of $1,400,000 in 2021 before considering the following
I want do know if im doing this right
Esquire Comic Book Company had income before tax of $1,400,000 in 2021 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 principles. The before-tax loss on disposal was $380,000. The division generated before-tax income from operations from the beginning of the year through disposal of $580,000. 2. The company incurred restructuring costs of $95,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 $ 978,750 Income from continuing operations Discontinued operations: Income from operations of discontinued component Income tax expense 200,000 (50,000) 150,000 Income from operations of discontinued component Income (loss) on discontinued operations Net income (loss) 300,000 1,128,750 $Step by Step Solution
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