On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $21 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information.

• The book value of the assets of the segment at the time of the sale was $19 million.
• The loss from operations of the segment during 2024 was $3.2 million.
• Pretax income from other continuing operations for the year totaled $6.9 million.
• The income tax rate is 25%.

Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes.

Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.

CALIFORNIA MICROTECH CORPORATION

Partial Income Statement

For the Year Ended December 31, 2024

Income from continuing operations before income taxes: $6,900,000

Income tax expense: 1,725,000

Income from continuing operations: $5,175,000

Discontinued operations:

Loss from operations of discontinued component: ?

Income tax benefit: ?

Loss on discontinued operations: ?

Net income: ?