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3241004551 [841]
4 years ago
12

Esquire Comic Book Company had income before tax of $1,700,000 in 2016 before considering the following material items:

Business
1 answer:
marshall27 [118]4 years ago
7 0

Answer:

                    Esquire Comic Book Company

                               Income Statement

                For the Year Ended December 31, 2016

<u />

Income from continuing operations                                  $1,700,000

<u>Restructuring costs                                                               ($75,000)</u>

Income form continuing operations before taxes            $1,625,000

<u>Income taxes                                                                       ($650,000)</u>

Net income from continuing operations                             $975,000

Discontinued operations:

Income from discontinued operations                                $640,000

<u>Loss on disposal of division                                               ($420,000)</u>

Income from discontinued operations before taxes         $220,000

<u>Income taxes                                                                         ($88,000)</u>

Net income from discontinued operations                         $132,000

Total net income                                                                $1,107,000

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