Answer:
                    Esquire Comic Book Company
                                 Income Statement
                 For the Year Ended December 31, 2021
Operating income                                                 $1,550,000 
Restructuring costs                                                 ($60,000)
Income from continuing operations b/ Taxes     $1,490,000
<u>Income tax expense                                              ($372,500)</u>
Income from continuing operations                                        $1,117,500
Discontinued operations:
- Operating income                                          $610,000
- Loss on disposal                                          ($395,000)
- <u>Income tax on discontinued operations       ($53,750)</u>
Income from discontinued operations                                     $161,250
<u>Net income                                                                             $1,278,750</u>
Explanation:
Income from discontinued operations must be reported separately, but any restructuring costs must be included as operational expenses.