Question

Help Save & Exit Submit Check my work 2 Esquire Comic Book Company had income before tax of $1,750,000 in 2021 before considering the following material items: 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 disposa was $415,000. The division generated before-tax Income from operation from the beginning of the year through disposal of $650.000, 2. The company incurred restructuring costs of $80,000 during the year. eBook Hing Ask Prins 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.) References E SQUIRE COMIC BOOK COMPA Partial Income Statement For the Year Ended December 31, Income from continuing operations Discontinued operators income from operations of a continued component Income tax expense Income (ossono sconto ed operasons Net noome Oss

Answer 1

ESQUIRE COMIC BOOK COMPANY

Partial Income Statement

For the year Ended December 31, 2021

Particulars	Amount($)	Amount($)
Income from continuing operations		1252500
Discontinued operations:
Income from operations of discontinued component	235000
Income tax expense {235000*25%}	(58750)
Income on discontinued operations		176250
Net income [Income from continuing operations+Income on discontinued operations]		1428750

Working notes[WN]:

1) Income from operations of discontinued component

=Income from operations from the beginning of the year through disposal - Before tax-loss on disposal

=$650000-$415000

=$235000

2) Income from continuing operations

Particulars	Amount($)
Income before considering additional items	1750000
Decrease in income due to restructuring costs	(80000)
Income from continuing operations before tax	1670000
Income tax expense(25%)	(417500)
Income from continuing operations	1252500

--------------*---------------

DO VOTE, ALL THE BEST