Trayer Corporation has income from continuing operations of $266,000for the year ended December 31, 2017. It also has the following items (before considering income taxes).

1.An unrealized loss of $84,000 on available-for-sale securities

2.A gain of $27,000on the discontinuance of a division (comprised of a $16,000 loss from operations and a $43,000 gain on disposal).3.A correction of an error in last year's financial statements that resulted in a $10,000understatement of 2016 net income.

Assume all items are subject to income taxes at a21% tax rate.

(a)

Prepare an income statement, beginning with income from continuing operations.