The Nikel Company Sold Its Cattle Ranching Component on June

Multiple Choice

The Nikel Company sold its cattle ranching component on June 30, 2010, for a gain of $1, 000, 000.From January through June, the component had sustained operating income of $300, 000.The income tax rate is 30%.How should Nikel report the income and the sale on its income statement?

A) as $300, 000 operating income and a $1, 000, 000 gain on sale of component
B) as a $1, 300, 000 gain in operating income
C) as a net of tax gain of $910, 000 after income from continuing operations
D) as $210, 000 operating income and a $700, 000 gain on sale of the component shown before extraordinary items