Preparing an income statement with irregular items (LO 5,6) KEW Corp. has 500,000 shares of common stock outstanding. In 2014, KEW reports income from continuing operations before taxes of $4,350,000. Additional transactions from 2014-and not considered in the $4,350,000-are as follows: The company reviewed its notes receivable and discovered that a note carried at $ 16,000 was 18 months past due. The note was not likely to be collected. KEW sold machinery for $85,000 that originally cost $300,000. Accumulated depreciation at the time of the sale amounted to $225,000. KEW sells unneeded machinery occasionally when retooling one of its production processes. KEW sold a division during 2014 resulting in a pre-tax loss of $890,000. The operating loss incurred by the discontinued division prior to its sale was $650,000; the loss from its disposal was $240,000. This transaction meets the criteria for discontinued operations. KEW lost $395,000 (pre-tax) when a plant it operated in a third-world country was expropriated following a revolution. There was no prior history of the government expropriating assets of companies operating in that country. Required: Based on this information, prepare an income statement for the year ended December 31, 2014, starting with income from continuing operations before income taxes; include proper earnings per share disclosures. KEW's total effective tax rate on all items was 35%