The ledger of Coquitlam Corporation at December 31, 2017, contains the following summary data:

Your analysis reveals the following additional information:
1. The company has a 25% income tax rate.
2. The ceramics division was discontinued on July 31. The loss from operations for the division up to that day was $150,000 before income tax. The division was sold at a pre-tax gain of $70,000 before income tax.
3. There were 200,000 common and 100,000 non cumulative preferred shares issued on December 31, 2016, with no change during the year.
Instructions
(a) Prepare a multiple-step income statement for the year.
(b) Prepare a statement of comprehensive income as a separate statement.
TAKING IT FURTHER
What are the characteristics of a component of an entity? What information does profit (loss) from continuing operations provide to a user? What information does profit (loss) from discontinued operations provide to a user?

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Cash dividends-common Cash dividends-preferred Cost of goods sold Sales Operating expenses s Other comprehensive income-gain on equity 125,000 55,000 888,000 1,750,000 451,000 investments (before income tax) Other expenses Retained earnings, January 1, 2017 $47,000 18,000 642,000