Munnster Corporation€™s income statements for the years ended December 31, 2014, and 2013 included the following information before adjustments:

On January 1, 2014, Munnster Corporation agreed to sell the assets and product line of one of its operating divisions for $2,000,000. The sale was consummated on December 31, 2014, and it resulted in a gain on disposition of $350,000. This division€™s pre-tax net losses were $505,000 in 2014 and $170,000 in 2013. The income tax rate for both years was 30%.

Required:
Starting with operating income (before tax), prepare revised comparative income statements for 2014 and 2013 showing appropriate details for gain (loss) from discontinuedoperations.

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2014 2013 Operating income Gain on sale of division s 900,000 $750,000 350,000 S1,250,000$750,000 Provision for income taxes Net income (375,000) S 875,000