Exhibit 5-1
The following condensed income statement of Ranger Corporation is presented for the two years ended December 31, 2016 and 2015: On January 1, 2016, Ranger entered into an agreement to sell one of its separate operating divisions for $2,000,000. The sale resulted in a gain on disposition of $900,000 on November 12, 2016, and qualifies as a discontinued component. This division's contribution to Ranger's reported income before income taxes for each year was as follows:
2016 $\quad $ $\quad $$700,000 loss
2015 $\quad $ $\quad $$400,000 loss
Assume an income tax rate of 30%.
-Refer to Exhibit 5-1. In the preparation of a revised comparative income statement, Ranger should report income from continuing operations after income taxes for 2016 and 2015, respectively, amounting to
A) $1,540,000 and $700,000.
B) $1,540,000 and $980,000.
C) $1,680,000 and $700,000.
D) $1,680,000 and $980,000.

Question

Exhibit 5-1
The following condensed income statement of Ranger Corporation is presented for the two years ended December 31, 2016 and 2015:   On January 1, 2016, Ranger entered into an agreement to sell one of its separate operating divisions for $2,000,000. The sale resulted in a gain on disposition of $900,000 on November 12, 2016, and qualifies as a discontinued component. This division's contribution to Ranger's reported income before income taxes for each year was as follows:
  2016  $\quad $ $\quad $$700,000 loss
2015  $\quad $ $\quad $$400,000 loss
 Assume an income tax rate of 30%.
-Refer to Exhibit 5-1. In the preparation of a revised comparative income statement, Ranger should report income from continuing operations after income taxes for 2016 and 2015, respectively, amounting to
A) $1,540,000 and $700,000. 
B) $1,540,000 and $980,000. 
C) $1,680,000 and $700,000. 
D) $1,680,000 and $980,000.

Quizplus · Accepted Answer

The Answer of Exhibit 5-1
The following condensed income statement of Ranger Corporation is presented for the two years ended December 31, 2016 and 2015:   On January 1, 2016, Ranger entered into an agreement to sell one of its separate operating divisions for $2,000,000. The sale resulted in a gain on disposition of $900,000 on November 12, 2016, and qualifies as a discontinued component. This division's contribution to Ranger's reported income before income taxes for each year was as follows:
  2016  $\quad $ $\quad $$700,000 loss
2015  $\quad $ $\quad $$400,000 loss
 Assume an income tax rate of 30%.
-Refer to Exhibit 5-1. In the preparation of a revised comparative income statement, Ranger should report income from continuing operations after income taxes for 2016 and 2015, respectively, amounting to
A) $1,540,000 and $700,000. 
B) $1,540,000 and $980,000. 
C) $1,680,000 and $700,000. 
D) $1,680,000 and $980,000.

Exhibit 5-1 the Following Condensed Income Statement of Ranger Corporation \quad

Exhibit 5-1
the Following Condensed Income Statement of Ranger Corporation $\quad$