Income Statement Sections

During the current year, Newtech Corporation sold a segment of its business at a loss of $$112,500.$

Until it was sold, the segment had a current period operating loss of $$100,000.$ The company had

$$375,000$ from continuing operations for the current year.

Prepare the lower part of the income statement, beginning with the $$375,000$ income from

continuing operations. Follow tax allocation procedures, assuming that all changes in income

are subject to a $40\%$ income tax rate. Disregard earnings per share disclosures.

$($Round all calculations to nearest dollar amount.$)$

Newtech Corporation

Partial Income Statement

Current Year

Income from continuing operations Answer

Discontinued operations

Loss from operations of discontinued segment $($net of tax$)$ Answer

Loss on disposal of discontinued segment $($net of tax$)$ Answer

Answer

Net income Answer