Esquire Comic Book Company had income before tax of $1,750,000 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 $415,000.
2. The division generated before-tax income from operations from the beginning of the year through disposal of $650,000. The company incurred restructuring costs of $80,000 during the year.

Required:
Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%.

Net income = $1,548,750

Explanation:

The 2021 income statement for Esquire can be prepared as follows:

Esquire Comic Book Company

Income Statement

For the Year Ended 20201

Details                                                                         $                          $            

Income from continuing operations

Operating income                                                 1,750,000

Restructuring costs                                                 (80,000)  

Income from continuing operations                                              1,830,000

Income (loss) from discontinued operation

Loss on disposal of discontinued operation         (415,000)

Income from discontinued operation                    650,000  

Net income (loss) from discontinued operation                              235,000  

Income before tax                                                                          2,065,000

Income tax expense (25% * 2,065,000)                                        (516,250)  

Net income                                                                                      1,548,750

what

explanation:

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.