Exercise 4-7 Income statement presentation; discontinued operations; restructuring charges [LO4-1, 4-3, 4-4]

Esquire Comic Book Company had income before tax of $1,400,000 in 2016 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 $390,000. The division generated before-tax income from operations from the beginning of the year through disposal of $580,000. Neither the loss on disposal nor the operating income is included in the $1,400,000 before-tax income the company generated from its other divisions.
2.	The company incurred restructuring costs of $95,000 during the year.

Required:

Prepare a 2016 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 40%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)