Income Statement Sections During the current year. Newtech Corporation sold a segment of its business at a loss of $337,500. Until it was sold, the segment had a current period operating loss of $300,000. The company had $1,125,000 from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $1,125,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 25% income tax rate. Disregard earnings per share disclosures