The following condensed statement of income of Helen Corporation, a diversified company, is presented for the two years ended December 31, 2017 and 2016:

On January 1, 2017, Helen entered into an agreement to sell for $3,200,000 the assets and product line of one of its separate operating divisions. The sale was consummated on December 31, 2017, and resulted in a gain on disposition of $900,000. This division's contribution to Helen's reported income before taxes for each year was as follows:
2017..........................$640,000 loss
2016..........................$500,000 loss
Assume an income tax rate of 35%.
Required:
1. In preparing a revised comparative statement of income, Helen should report income from continuing operations after income taxes for 2017 and 2016, respectively, amounting to how much?
2. Starting with the revised income from continuing operations numbers you obtained in requirement 1, prepare the revised comparative income statements for 2017 and 2016 showing appropriate details for gain (loss) from discontinued operations.

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2017 2016 Net sales Cost of sales Gross profit Operating expenses Operating income Gain on sale of division Net income before taxes Provision for income taxes $10,000,000 (6,200,000) 3,800,000 (2,200,000) 1,600,000 900,000 2,500,000 (875,000) $ 1,625,000 $9,600,000 (6,000,000) 3,600,000 (2,400,000) 1,200,000 1,200,000 (420,000) $ 780,000 Net income