On January 1, 2010, RAHM entered into an agreement to sell for $2,000,000 one of its separate operating divisions. The sale resulted in a gain on disposition of $900,000 on November 12, 2010, and qualifies as a discontinued component. this division's contribution to RAHM'S reported income before income taxes for each year was as follows: (note: the below amount is currently included in operating income.) 2010 = $700,000 loss assume an income tax rate of 30%.

	2010
Net sales	$10,000,000
Cost of sales	6,000,000
Gross profit	$ 4,000,000
Operating expense	2,500,000
Operating income	$ 1,500,000
Gain on sale of a component	900,000
	$ 2,400,000
Income tax expense	720,000
Net income	$ 1,680,000

Required:

Refer to exhibit above. In the preparation of a revised comparative income statement, RAHM should report income from continuing operations after income taxes for 2010 amounting to _________?

Answer rating: 100% (QA)

Income statement from continuing operations for the year ended 31DEC 2010 Contin... View the full answer