Discuss income from continuing operations

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The Bilibong Company had three distinct operating divisions, each of which qualifies as a separate component. The sports equipment division had been unprofitable, and on June 1, 2016, the company adopted a plan to sell the assets of the division. The actual sale was completed on December 3, 2016, at a price of $1,200,000. The sale resulted in a before-tax gain of $300,000

The division incurred before-tax operating losses of $380,000 from the beginning of the year through December 3. The income tax rate is 40%. Bilibong's after-tax income from its continuing operations is $500,000.

Required:

Prepare an income statement for 2016 beginning with "income from continuing operations." Include appropriate EPS disclosures assuming 200,000 shares of common stock were outstanding throughout the year.

Reference no: EM131805759

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