Exhibit 5-1
The following condensed income statement of Ranger Corporation is presented for the two years ended December 31, 2016 and 2015: $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 $980,000.$ 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.

Information Reported or Disclosed About the Profit or Loss of Reportable

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