Shrink Ltd. has profit from continuing operations of $320,000 for the year ended December 31, 2021. It also has the following before considering income tax: a net gain of $60,000 from the discontinuance of a component of the entity, which includes a $90,000 profit from the operation of the segment and a $30,000 loss on its disposal. Assume that the income tax rate on all items is 30%.

Instructions

Prepare a partial income statement, beginning with profit from continuing operations, using the all-inclusive format. (Hint: Use Illustration 14.7 as a presentation guide.)