The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $11 million. The loss from operations of the segment during 2016 was $4.0 million. Pretax income from continuing operations for the year totaled $7.2 million. The income tax rate is 40%. Assume that the semiconductor segment was not sold during 2016 but was held for sale at year-end. The estimated fair value of the segments assets, less costs to sell, on December 31 was $14 million.

Prepare the lower portion of the 2016 income statement beginning with pretax income from continuing operations. Ignore EPS disclosures.