Esquire Comic Book Company had income before tax of $1,000,000 in 2021 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $340,000. The division generated before-tax income from operations from the beginning of the year through disposal of $500,000. 2. The company incurred restructuring costs of $80,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations Discontinued operations: Income from operations of discontinued component Income tax expense Net income (loss) 0
Esquire Comic Book Company had income before tax of $1,000,000 in 2021 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $340,000. The division generated before-tax income from operations from the beginning of the year through disposal of $500,000. 2. The company incurred restructuring costs of $80,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations Discontinued operations: Income from operations of discontinued component Income tax expense Net income (loss) 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Esquire Comic Book Company had income before tax of $1,000,000 in 2021 before considering the following material items:
1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting
principles. The before-tax loss on disposal was $340,000. The division generated before-tax income from operations from the
beginning of the year through disposal of $500,000.
2. The company incurred restructuring costs of $80,000 during the year.
Required:
Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%.
Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)
ESQUIRE COMIC BOOK COMPANY
Partial Income Statement
For the Year Ended December 31, 2021
Income from continuing operations
Discontinued operations:
Income from operations of discontinued component
Income tax expense
Net income (loss)
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb630b26f-8125-44a9-a48d-825feadb47d7%2F7ad857fd-4db2-4079-b6d3-a51c2acf5c70%2Fqzv6e9_processed.png&w=3840&q=75)
Transcribed Image Text:Esquire Comic Book Company had income before tax of $1,000,000 in 2021 before considering the following material items:
1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting
principles. The before-tax loss on disposal was $340,000. The division generated before-tax income from operations from the
beginning of the year through disposal of $500,000.
2. The company incurred restructuring costs of $80,000 during the year.
Required:
Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%.
Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)
ESQUIRE COMIC BOOK COMPANY
Partial Income Statement
For the Year Ended December 31, 2021
Income from continuing operations
Discontinued operations:
Income from operations of discontinued component
Income tax expense
Net income (loss)
0
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