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

	2015	2015
sales	15, 000, 000	9 ,600, 000
cost of goods sold	9, 200, 000	6 ,000, 000
gross profit	$5, 800, 000	3,600, 000
operating expenses	3, 200, 000	2,600 ,000
operating income	2 600 000	1000 000
gain on sale of division	600 ,000	-
income tax expenses	1, 280, 000	400, 000
net income	1, 920 ,000	600 ,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 $5,000,000. Book value of the divisions assets was $4,400,000. The divisions contribution to Jacksons operating income before-tax for each year was as follows:

2016

$400,000

loss

2015

$300,000 loss

Assume an income tax rate of 40%.

Required:

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.)

	2016	2015
income from Continuing operations before income taxes	?	?
income tax benefit (expense)	?	?
income from continuing operations	?	?
Discontinued operations gain (loss):
Income (loss) from operating of discontinued component	200,000	(300,000)
Income tax benefit (expense)	?	?
Income (loss) on discontinued operations	?	?
Net income	?	?