Reporting Discontinued Operations On October 31, Leigh Corp, approved a formal plan to dispose of its Knat Products Dwision On December 31 , the Knit Products Division was held for sale but had not been sold. The Knit Products Division (considered a separate business component) reported a net loss from operarions of $303,000 before tax for the year ended December 31 . The Knil Products oivisian has a book value and fair valise (after seling expenses) of $2,160,000 and $1,950,000, respectively. Le gh Corp, reported income from continuing operations of $540,000 before tax for the year. 2. 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 incicate a loss. b. Hepeat the requirements of part a but now assume that the book value of the Krit Procucts Divsion is 51,920,000 on December 31 . - Use a negative sign to indicate a loss