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Question - The Bilibong Company had three operating divisions, each of which qualifies as a separate component. The sports equipment was sold on December 31, 20xx resulting 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 31 Bilibong's after-tax income from its continuing operations is $500,000.
The income tax rate is 40%.
Required -
1. Prepare an income statement for 20xx beginning with "income from continuing operations."
2. Include EPS disclosures assuming 200,000 shares of common stock were outstanding throughout the year.
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