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On January 1, 2010, RAHM entered into an agreement to sell for $2,000,000 one of its separate operating divisions. The sale resulted in a gain

On January 1, 2010, RAHM entered into an agreement to sell for $2,000,000 one of its separate operating divisions. The sale resulted in a gain on disposition of $900,000 on November 12, 2010, and qualifies as a discontinued component. this division's contribution to RAHM'S reported income before income taxes for each year was as follows: (note: the below amount is currently included in operating income.) 2010 = $700,000 loss assume an income tax rate of 30%.


2010

Net sales

$10,000,000

Cost of sales

6,000,000

Gross profit

$ 4,000,000

Operating expense

2,500,000

Operating income

$ 1,500,000

Gain on sale of a component

900,000

$ 2,400,000

Income tax expense

720,000

Net income

$ 1,680,000


Required:

Refer to exhibit above. In the preparation of a revised comparative income statement, RAHM should report income from continuing operations after income taxes for 2010 amounting to _________?

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