Question: LeBron's Bookstores has two divisions: books and electronics. The electronics division had another great year in 2012 with sales of $10 million, cost of goods sold of $6 million, operating expenses of $2 million, and income tax expense of $500,000. The book division did not do as well and was sold during the year. The loss from operations and sale of the book division was $800,000 before taxes and $600,000 after taxes.
Required: Prepare the income statement for LeBron's Bookstores, including the proper reporting for the discontinued book division.