The accountant for the Tiger Company prepared comparative income statements for 2007 and 2008 as follows:

The auditor of Tiger Company reviewed the accounting records and income statements and discovered the facts described in items 1 and 2 below. All amounts incurred during 2007 and 2008 are included in the preceding statements.
1. Included in the category €œOther Items€ (along with other smaller miscellaneous items) were the following:
a. A casualty loss of $60,000 in 2007 that was considered to be both unusual and infrequent
b. A $150,000 loss in 2008 from an unusually large write-down of inventory because of obsolescence
c. A $250,000 gain in 2007 that was considered to be both unusual and infrequent
2. On July 1, 2008, Tiger has announced its intention to sell its backscratcher division. This division is considered a component of the company. Operating results for this division are included in the company€™s overall operating results for 2007 and 2008, as shown previously, and are as follows:

The division had not been sold by the end of 2008, so the company classified it as held for sale. The division consisted of the following items with book values and fair values on December 31, 2008:

Required
Prepare corrected comparative statements of income for 2008 and 2007 for the Tiger Company. Ignore earnings pershare.

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TIGER COMPANY Comparative Statements of Income For Years Ended December 31 2008 2007 Sales Cost of goods sold Gross profit Operating expenses Operating income Other items Income before income taxes Income tax expense (30%) Net income S3,500,000 $4,600,000 1,600, 000 (2,600,000) 1,900,000 1,300,000 $ 600,000 200,000 $ 400,000 $2,000,000 1,500,000 S500,000 00,000 S 600,000 (120,000 180,000) 280,000 Sales Cost of goods sold Operating expenses 2008 (7/1-12/31) $200,000 300,000 100,000 2008 (1/1-6/30) $400,000 320,000 180,000 2007 $700,000 290,000 110,000 Item Assets Liabilities Book Value $720,000 450,000 Fair Value $620,000 510,000