ABC Corporation had Net Income from continuing operations for year 2011 totaling $340,000. The accountant did not take into account the subsequent information (Assume a tax rate of 40%):
1. The corporation experienced an uninsured flood loss of $50,000 before taxes. While this loss meets the criterion of an extraordinary item, it has not been recorded.
2. The corporation disposed of its sporting goods division during 2010. This disposal meets the criterion for discontinued operations. The division correctly evaluated income from operating this division of $100,000 before taxes and a loss of $12,000 before taxes on the disposal of the division. All of these events occurred in 2010 and have not been recorded.
Required: Show in good form the income statement of ABC Corporation for 2011 starting with "income from continuing operations." Suppose that ABC's tax rate is 40 percent and 100,000 shares of common stock were outstanding during the year.