Reporting Discontinued Operations Leigh Corp. disposed of its Knit Products Division in June at a loss of $38,000 before tax. Prior to the sale, the Knit Products Division (considered a separate business component) reported a net loss from operations of $405,000 before tax. 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. b. Repeat the requirements of part a but now assume that the Knit Products Division reported income from operations of $80,000 for the year. - Use a negative sign to indicate a loss