Pronghorn Corp. is a public company and has 100,000 common shares outstanding. In 2023, the company reported income from continuing operations before income tax of $2,926,800. Additional transactions not considered in the $2,926,800 are as follows: 1. 2. 3. 4. 5. In 2023, Pronghorn sold equipment for $151,200. The machine had originally cost $86,400 and had accumulated depreciation to date of $38,880. The company discontinued operations of one of its subsidiaries during the current year at a loss of $313,200 before tax. Assume that this transaction meets the criteria for discontinued operations. The loss on operation of the discontinued subsidiary was $97,200 before tax. The loss from disposal of the subsidiary was $216,000 before tax. The sum of $561,600 was received as a result of a lawsuit for a breached 2020 contract. Before the decision, legal counsel was uncertain about the outcome of the suit and Pronghorn had not established a receivable. In 2023, the company reviewed its accounts receivable and determined that $58,320 of accounts receivable that had been carried for years appeared unlikely to be collected. No allowance for expected credit losses was previously set up. An internal audit discovered that amortization of intangible assets was understated by $37,800 (net of tax) in a prior period. The amount was charged against retained earnings.