Answer:
                     Esquire Comic Book Company
                                Income Statement
                For the Year Ended December 31, 2016
Operating income                                                $1,000,000
<u>Restructuring costs                                                 ($80,000)</u>
Income from continuing operations b/ Taxes      $920,000
<u>Income tax expense                                              ($368,000)</u>
Income from continuing operations                                        $552,000
Discontinued operations:
- Operating income                                         $500,000
- Loss on disposal                                          ($350,000)
- <u>Income tax on discontinued operations      ($60,000)</u>
Income from discontinued operations                                     $90,000
<u>Net income                                                                               $642,000</u>
Explanation:
Income from discontinued operations must be reported separately, but any restructuring costs must be included as operational expenses.