the year ending December $31,2013,$ Micron Corporation had income from continuing operations before taxes of $$1,200\mathrm{.}000$ before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material$\mathrm{.}1,$ During $2013.$ one of Micron's factories was damaged in an earthquake. As a result, the firm recognized a loss of $$800,000.$ The event is considered unusual and infrequent$\mathrm{.}2.$ In November of $2013.$ Micron sold its Waffle House restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May of $2013.$ The income from operations of the chain from January $1,2013,$ through November was $$160,000$ and the loss on sale of the chain's assets was $$300,000\mathrm{.}3.$ In $2013,$ Micron sold one of its six factories for $$1,200,000.$ At the time of the sale, the factory had a carrying value of S$1\mathrm{.}100,000.$ The factory was not considered a component of the entity$\mathrm{.}4.$ In $2011,$ Micron's accountant omitted the annual adjustment for patent amortization expense of $$120,000.$The error was not discovered until December $2013.$Required:$1.$ Prepare Micron's income statement, beginning with income from continuing operations before taxes, for the year ended December $31,2013.$ Assume an income tax rate of $20\%.$ Ignore EPS disclosures$\mathrm{.}2.$ Briefly explain the motivation for segregating certain income statement events from income from continuing operations.The preliminary $2013$ income statement of Alexian Systems Ltd is presented on the next page.