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 $16 million. The loss from operations of the segment during 2016 was $4.4 million. Pretax income from continuing operations for the year totaled $7.6 million. The income tax rate is 35%. 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 $18 million.

Prepare the lower portion of the 2016 income statement beginning with pretax income from continuing operations. Ignore EPS disclosures.(Amounts to be deducted and negative amounts should be indicated with a minus sign.Enter your answers in wholedollars.)