Question #1

Canton Corporation reported the following items in its adjusted trial balance for the year ended December 31, 2021:

Income from continuing operations before income taxes $120,000

Gain on disposal of discontinued component 28,000

Loss from operations of discontinued component (60,000)

Canton is subject to a 25% tax rate.

Complete the December 31, 2021, income statement for Canton Corporation, starting with income from continuing operations and using the table provided below:

(NOTE: Problem and format is similar to Illustration 4-7 on page 179 of the textbook.)

Canton Corporation

Partial Income Statement

For the Year Ended December 31, 2021

Income from continuing operations		120,000
Discontinued operations: Loss from operations of discontinued component Including gain on disposal
Income tax benefit
Loss on discontinued operations
Net income