Income statement presentation; discontinued operations; restructuring charges [LO4-1, 4-3, 4-4] Esquire Comic Book Company had income before tax of $1,100,000 in 2013 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 $360,000. The division generated before-tax income from operations from the beginning of the year through disposal of $520,000. Neither the loss on disposal nor the operating income is included in the $1,100,000 before-tax income the company generated from its other divisions.

2. The company incurred restructuring costs of $65,000 during the year.

Required: Prepare a 2013 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 40%. Ignore EPS disclosures