Wenger Company reported income before taxes of $1,600,000 and a discontinued operations loss of $400,000. Assume that the companys tax rate is 30%. What amounts will be reported on the income statement for income from continuing operations and a discontinued operations loss, respectively?

$1,120,000 and $400,000

$1,120,000 and $280,000

$1,320,000 and $400,000

$1,320,000 and $280,000

None of the above.

*Please provide brief explanation*