Christianson Cruise Lines, Inc., reported the following income statement for the year ended December 31, 2010:
Millions
Operating revenues ......................................................... $80,998
Operating expenses ......................................................... 71,300
Operating income............................................................. 9,698
Other revenue (expense), net ........................................... 887
Income from continuing operations.................................. 10,585
Discontinued operations, net of tax.................................. 908
Net income........................................................................ $11,493

Requirements
1. Were Christianson’s discontinued operations more like an expense or revenue? How can you tell?
2. Should the discontinued operations of Christianson be included in or excluded from net income? State your reason.
3. Suppose you are working as a financial analyst and your job is to predict Christianson’s net income for 2011 and beyond. Which item from the income statement will you use for your prediction? Identify its amount. Why will you use this item?