Answer:
Net income = $1,548,750
Explanation:
The 2021 income statement for Esquire can be prepared as follows:
Esquire Comic Book Company
Income Statement
For the Year Ended 20201
<u>Details $ $ </u>
<u>Income from continuing operations </u>
Operating income 1,750,000
Restructuring costs <u> (80,000) </u>
Income from continuing operations 1,830,000
<u>Income (loss) from discontinued operation</u>
Loss on disposal of discontinued operation (415,000)
Income from discontinued operation <u> 650,000 </u>
Net income (loss) from discontinued operation <u> 235,000 </u>
Income before tax 2,065,000
Income tax expense (25% * 2,065,000) <u> (516,250) </u>
Net income <u> 1,548,750 </u>