Exercise 4-7 (Algo) Income statement presentation; discontinued operations; restructuring costs (L04-1, 4-3, 4-4] Esquire Comic Book Company had income before tax of $1,900,000 in 2021 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $430,000. The division generated before-tax income from operations from the beginning of the year through disposal of $680,000. 2. The company incurred restructuring costs of $95,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) & Answer is complete but not entirely correct. ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 $ 1,900,000 Income from continuing operations Discontinued operations: Income from operations of discontinued component Income tax expense Income from operations of discontinued component Income (loss) on discontinued operations Net income (loss) 95,000 1,805,000 451,250 X 2,351,250 $ 1,353,750 X