Prepare income statement for Esquire beginning

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Reference no: EM132855913

Problem - Esquire Comic Book Company had income before tax of $1,100,000 in 2021 before considering the following material items:

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 $350,000. The division generated before-tax income from operations from the beginning of the year through disposal of $520,000.

2. The company incurred restructuring costs of $65,000 during the year.

Required - Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures.

Reference no: EM132855913

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