Katherine's Fashions Is Going to Discontinue One of Its Manufacturing

Multiple Choice

Katherine's Fashions is going to discontinue one of its manufacturing divisions. The division's assets with a book value of $1,010,000 are sold for $80,000. The division generated an operating loss of $1,480,000 after the decision was made to discontinue the segment. Ignoring income taxes, what total amount should be reported on the income statement as discontinued operations?

A) $550,000 loss
B) $930,000 loss
C) $2,410,000 loss
D) $1,480,000 gain