Turnkey Entity Disposed of Its Wholly-Owned Foreign Subsidiary, Threshold Entity

Multiple Choice

Turnkey Entity disposed of its wholly-owned foreign subsidiary, Threshold Entity. Turnkey had a total credit balance of $50 million in OCI with $12 million relating to foreign exchange differences between Turnkey and Threshold. Which of the following statements most closely reflects the ultimate consequences of the disposal?

A) Retained earnings for Turnkey increases by $12 million
B) Net income for Turnkey decreases by $12 million
C) Income from continuing operations increases by $12 million
D) More than one of the above
E) None of the above