The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2016 and 2015:

following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2016 and 2015 2016 2015 Sales 16,200,000 10,800,000 Cost of goods sold 9,800,000 6,600,000 Gross profit 6,400,000 4,200,000 Operating expenses 3.680.000 3.080.000 2.720.000 1,120,000 720.000 Operating income Gain on sale of division 3,440,000 1.120.000 Income tax expense 1,376,000 448.000 Net income 2,064,000 672.000 On October 15, 2016, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualifies as a component of an entity as defined by GAAP The division was sold on December 31, 2016, for $5,360,000. Book value of the division's assets was $4,640,000. The division's contribution to Jackson's operating income before-tax for each year was as follows 2016 $460,000 loss 2015 $360,000 loss Assume an income tax rate of 40% Required: n each case, net any gain or loss on sale of division with annual income or loss from the division and show the tax effect on a separate line) 1. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete JACKSON HOLDING COMPANY Comparative Income Statements (in part For the Years Ended December 31 2016 2015 2,720,000X Income from continuing operations before income taxes 1,120,000X 360,000X oss) from operations of discontinued component 460,000X ncome (1,272,000) Income tax benefit (expense) Income from continuing operations Discontinued operations gain (loss) (460,000) X 360,000) Income (loss) from operations of discontinued component 720,000X Gain on sale of division Income (loss) on discontinued operations 260.000 2.000