The following condensed statements of the Lewis Holding Company are presented for the two years ended December 31, 2014 and 2013:

	2014		2013
Sales	$15,000,000		$12,600,000
Cost of goods sold	9,200,000		8,200,000
Gross profit	5,800,000		4,400,000
Operating expenses	3,300,000		2,300,000
Operating income	2,500,000		2,100,000
Gain on Sale of Assets	100,000
Impairment loss on assets of division held for sale	(120,000)		-
	2,480,000		2,100,000
Income tax expense (40%)	992,000		840,000
Net income	$1,488,000		$1,260,000

Other relevant information:

(1) On December 1, 2014, Lewis entered into a tentative agreement to sell the assets of one its divisions. The division comprises a component of the business and its sale is considered a strategic shift in the companys operations. The sale is expected to be completed in early 2015. The book value of the divisions assets on December 31, 2014 is $5,200,000 and the estimated fair value (net of expected costs to sell) is $5,080,000. The divisions contribution to Lewis operating income before-tax for each year was as follows:

2014 Operating Loss: ($80,000)

2013 Operating Income: $120,000

(2)On July 1, 2014, Lewis decided to dispose of a group of assets that was not considered a component of the entity under U.S. GAAP. The sale of the asset group is also not considered a strategic shift in the companys operations. The book value of the asset group was $800,000. The assets were sold on December 1, 2014 for $900,000 (net of selling costs).

Required: Prepare revised income statements for 2013 and 2014 according to U.S. GAAP, beginning with income from continuing operations. Assume a tax rate of 40%. You may ignore EPS disclosures. Use the table provided on page 3 for you answer and the extra space for calculations.

Income Statements For years ended	Dec. 31, 2014	Dec. 31, 2013
Income from Continuing Operations (Before Tax)
Income Tax (at 40%)
Income from Continuing Operations
Discontinued Operations (Total)
Net Income