Refer to the situation described in BE 4–7. Assume that the semiconductor segment was not sold during 2024 but was held for sale at year-end. The estimated fair value of the segment’s assets, less costs to sell, on December 31 was $10 million. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes.

Data From in BE 4-7

On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $10 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information:
∙ The book value of the assets of the segment at the time of the sale was $8 million.
∙ The loss from operations of the segment during 2024 was $3.6 million.
∙ Pretax income from other continuing operations for the year totaled $5.8 million.
∙ The income tax rate is 25%.
Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes.