Answer:
Explanation:
Partial income statement
For the Year Ended December 31, 2016
Income from continuing operations $975,000
Discontinued operations gain (loss):
Income from operations of discontinued component $220,000
Income tax expense ($88,000)
Income on discontinued operations $132,000
Net income $1,107,000
Income from operations of discontinued component (including loss on disposal of $420,000) = $220,000
Income from continuing operations:
Income before considering additional items $1,700,000
Decrease in income due to restructuring costs ($75,000)
Before-tax income from continuing operations $1,625,000
Income tax expense (40%) ($650,000)
Income from continuing operations $975,000
