The ledger of Port Hope Corporation at November 30, 2024, contains the following summary data: 

Cash dividends—common ..................................................................................................... $ 65,000 

Cash dividends—preferred ....................................................................................................... 25,000 

Common shares ....................................................................................................................... 325,000 

Cost of goods sold ................................................................................................................ 7,280,000 

Depreciation expense ............................................................................................................. 355,000 

Sales ....................................................................................................................................... 9,124,000 

Operating expenses ...........................................................................................................$1,120,000 

Other comprehensive income—loss on equity investments (before income tax) ...........83,000 

Rent revenue 48,000 Preferred shares ($5 noncumulative) .............................................400,000 

Retained earnings, December 1, 2023 ..................................................................................755,000 

Your analysis reveals the following additional information: 

1. The company has a 25% income tax rate. 

2. The communications devices division was discontinued on August 31. The profit from operations for the division up to that day was $20,000 before income tax. The division was sold at a loss of $75,000 before income tax. 

3. There were 200,000 common and 5,000 preferred shares issued on December 1, 2023, with no changes during the year. 

Instructions 

a. Prepare a multiple-step income statement for the year. 

b. Prepare a statement of comprehensive income as a separate statement. 

Why are gains and losses from discontinued operations reported separately from continuing operations?