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

Multiple Choice

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 under the caption "Discontinued Operations" for 2016 and 2015, 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.