Munn Corporation's income statements for the years ended December 31, 2008 and 2007 included the following information before adjustments:

On January 1, 2008, Munn Corporation agreed to sell the assets and product line of one of its operating divisions for \($1,600,000\). The sale was consummated on December 31, 2008, and it resulted in a gain on disposition of \($450,000\). This division’s pre-tax net losses were \($320,000\) in 2008 and \($250,000\) in 2007. The income tax rate for both years was 30%.

Required:
Starting with operating income (before tax), prepare revised comparative income statements for 2008 and 2007 showing appropriate details for gain (loss) from discontinued operations (net of tax effects)?

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Operating income Gain on sale of division Provision for income taxes Net income 2008 2007 $ 800,000 $600,000 450,000 1,250,000 600,000 (375,000) $ 875,000 (180,000) $420,000