Question

3 Esquire Comic Book Company had income before tax of $1,950,000 in 2021 before considering the following material items: 12.5 points 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $435,000. The division generated before-tax income from operations from the beginning of the year through disposal of $690,000. 2. The company incurred restructuring costs of $60,000 during the year. Skipped Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) eBook 001 Hint ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 Print Income from continuing operations Discontinued operations References 0 Income (loss) on discontinued operations Net income (loss)

Answer 1

burutuo) wory dwudul zinom operation = Income before tax - usmuturing cost - Inome tax expense = $1950, 000-160,000 472500 $1417500 W NI income tax expense - (income before tox- neducting costs) + Tax vare (152950,000 - 60000) 25% $ 472.500 JWO1 Statemeot Gurdwa) 400g ino) arinosa thawat6t5 nuolul Mateod + aut eot year endend Dec 31,2021 Particulars Amount $ 14, 17,500 Income from continuing operations (+) Loss from disposal (C) income tax expence @ 256 $ 255,000 * (63750) Net income $ 16,09,750