On October 31, Leigh Corp. approved a formal plan to dispose of its Knit Products Division. On December 31, the Knit Products Division was held for sale but had not been sold. The Knit Products Division (considered a separate business component) reported a net loss from operations of $505,000 before tax for the year ended December 31. The Knit Products Division has a book value and fair value (after selling expenses) of $3,500,000 and $3,300,000, respectively. Leigh Corp. reported Income from continuing operations of $900,000 before tax for the year. ... a. Assuming an income tax rate of 25%, prepare an income statement beginning with Income from Continuing Operations. Ignore earnings per share disclosures. Use a negative sign to indicate a loss. Leigh Corp. Income Statement Year Ended December 31 Income from continuing operations 5 675.000 Discontinued operations Loss from discontinued operations, net of tax savings (378.750) Impairment loss on discontinued component, net of tax savings (225,000) Net income $ 71,250 b. Repeat the requirements of part a but now assume that the book value of the Knit Products Division is $3,200,000 on December 31. Use a negative sign to indicate a loss. Leigh Corp. Income Statement Year Ended December 31 Income from continuing operations 5 675.000 Discontinued operations Loss from discontinued operations, net of tax savings Gain on discontinued component, net of tax Net income $ 371,250 x (378.750) 75.000 x Need assistance with B- It's not 75k