Esquire Comic Book Company had income before tax of $1,250,000 in 2024 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted account principles. The before-tax loss on disposal was $365,000. The division generated before-tax income from operations from the beginning of the year through disposal of $550,000. 2. The company incurred restructuring costs of $80,000 during the year. Required: Prepare the income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25% Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign. ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations Discontinued operations. Gain on sale of assets Income from operations of discontinued component Income tax benefit Income tax expense
Esquire Comic Book Company had income before tax of $1,250,000 in 2024 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted account principles. The before-tax loss on disposal was $365,000. The division generated before-tax income from operations from the beginning of the year through disposal of $550,000. 2. The company incurred restructuring costs of $80,000 during the year. Required: Prepare the income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25% Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign. ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations Discontinued operations. Gain on sale of assets Income from operations of discontinued component Income tax benefit Income tax expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Esquire Comic Book Company had income before tax of $1,250,000 in 2024 before considering the following material items:
1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accountin
principles. The before-tax loss on disposal was $365,000. The division generated before-tax income from operations from the
beginning of the year through disposal of $550,000.
2. The company incurred restructuring costs of $80,000 during the year.
Required:
Prepare the income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%
Ignore EPS disclosures.
Note: Amounts to be deducted should be indicated with a minus sign.
ESQUIRE COMIC BOOK COMPANY
Partial Income Statement
For the Year Ended December 31, 2024
Income from continuing operations
Discontinued operations.
Gain on sale of assets
Income from operations of discontinued component
Income tax benefit.
Income tax expense](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3b4a42ca-0d1b-4fd8-89ee-2b45327fb7d3%2Fe18a6a45-b0ad-40f5-a5b5-200bd12d0c0d%2Fjc4i9ea_processed.png&w=3840&q=75)
Transcribed Image Text:Esquire Comic Book Company had income before tax of $1,250,000 in 2024 before considering the following material items:
1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accountin
principles. The before-tax loss on disposal was $365,000. The division generated before-tax income from operations from the
beginning of the year through disposal of $550,000.
2. The company incurred restructuring costs of $80,000 during the year.
Required:
Prepare the income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%
Ignore EPS disclosures.
Note: Amounts to be deducted should be indicated with a minus sign.
ESQUIRE COMIC BOOK COMPANY
Partial Income Statement
For the Year Ended December 31, 2024
Income from continuing operations
Discontinued operations.
Gain on sale of assets
Income from operations of discontinued component
Income tax benefit.
Income tax expense
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