Problem:
On December 31, 2013, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $13 million. The business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $15 million. The loss from operations of the segment during 2013 was $4.1 million. Pretax income from continuing operations for the year totaled $7.3 million. The income tax rate is 30%.
Required:
Question: Prepare the lower portion of the 2013 income statement beginning with pretax income from continuing operations. Ignore EPS disclosures.
Note: Show all workings.