Reporting Discontinued Operations Leigh Corp, disposed of its Knit Products Division in June of 2020 at a loss of $76,000 before tax. Prior to the sale, the Knit Products Division considered a separate business component) reported a net loss from operations of $810,000 before tax Leigh Corp. reported income from continuing operations of 1.300.000 Before the to 2020 a. Assuming an income tax rate of 25%, prepare an income statement beginning with Income from Continuing Operations. Ignore earnings per share discopures. . Use a negative sign to indicate a loss, Leigh Corp. Income Statement June 2020 Income from continuing operations Discontinued operations Loss from discontinued operation.net of tax saving Loss on disposal of discontinued operations, net of tax savings Net income 5 1 350,000 157.000) 1607.500) 685 000 X 5 b. Repeat the requirements of part a but now assume that the Knit Products Division reported income from operations of 5160,000 in 2020. Use a negative sign to indicate a loss. Leigh Corp Income Statement June 2020 Income from continuing operations 5 1.350.000 Discontinued operations Income from discontinued operations net of tax 120,000 Loss on disposal of discontinued operations, net of tax savings 1607 S00) X Net income 862,500 x 5 Check