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

Exhibit 5-1 The following condensed income statement of Ranger Corporation is presented for the two years ended December 31, 2014 and 2013:



On January 1, 2014, 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, 2014, and qualifies as a discontinued component. This division's contribution to Ranger's reported income before income taxes for each year was as follows:

Assume an income tax rate of 30%.

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Refer to Exhibit 5-1. In the preparation of a revised comparative income statement, Ranger should report under the caption "Discontinued Operations" for 2014 and 2013, respectively,

A) income of $140,000 and a loss of $280,000
B) income of $140,000 and a loss of $0
C) income of $200,000 and a loss of $400,000
D) a loss of $700,000 and a loss of $400,000