Question - On December 31, 2012, Grant Williams Enterprises, Inc. (GWE) had income from continuing operations before taxes of $1,800,000. Additionally the following items occurred during 2012 which are not included in the $1.8 million number above:
a. During 2012 the board of directors approved a formal plan to dispose of the governmental sales division (component) of its business. This component provided operating income of $80,000 before tax for 2012. The sale of the segment resulted in a loss on the sale in the amount of $400,000 before tax.
b. On October 16, 2012, a volcano erupted in Missouri destroying GWE's mid-western factory. The uninsured pre-tax loss was computed at $200,000.
GWE has an effective tax rate of 30% and one million shares of common stock outstanding during 2012.
Required: Prepare (in good form) a partial income statement for GWE for 2012 starting with income from continuing operations.