11. The following condensed income statement of Scoop Corporation is presented for the two years ended December 31, 2007 and 2006:

	2007	2006
Net sales	$10,000,000	$9,000,000
Cost of sales	6,000,000	6,000,000
Gross profit	$ 4,000,000	$3,000,000
Operating expense	2,500,000	2,000,000
Operating income	$ 1,500,000	$1,000,000
Gain on sale of a component	800,000	-
	$ 2,300,000	$1,000,000
Income Tax Expense	690,000	300,000
Net income	$ 1,610,000	$ 700,000

On January 1, 2007, Scoop 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 $800,000 on November 12, 2007, and qualifies as a discontinued component. This division's contribution to Scoop's reported income before income taxes for each year was as follows:

2007 $600,000 loss

2006 $300,000 loss

Assume an income tax rate of 30%.

In the preparation of a revised comparative income statement, Scoop should report under the caption "Discontinued Operations" for 2007 and 2006, respectively

a.	income of $140,000 and a loss of $0
b.	income of $140,000 and a loss of $210,000
c.	income of $200,000 and a loss of $300,000
d.	a loss of $600,000 and a loss of $300,000