Kolby Inc. reported income from continuing operations of $71,000 and a loss from discontinued operations of $10,000

Question:

Kolby Inc. reported income from continuing operations of $71,000 and a loss from discontinued operations of $10,000 in 2014, all before income taxes. All items are fully taxable and deductible for tax purposes. Prepare the bottom of the income statement for Kolby Inc., beginning with income from continuing operations before income tax. Assume a tax rate of 25%.