Queen Corporation Decided to Sell Its Furniture Business Segment for $400,000,on

Multiple Choice

Queen Corporation decided to sell its furniture business segment for $400,000,on September 1,Year 1,which is also the disposal date.The book value of the segment's net assets is $500,000 on this date.The pre-tax income for the segment for the period January 1 - September 1,Year 1,was $150,000.Assuming a tax rate of 40%,choose the correct reporting for discontinued operations in the income statement of Queen Corporation,for the year ended December 31,Year 1. $$\begin{array} { | l | l | l | } \hline & \text { Income (loss) from } & \text { Gain (loss) from disposal } \\\hline & \text { Discontinued operations } & \text { of discontinued operations } \\\hline 1 & \$ 90,000 & ( \$ 60,000 ) \\\hline 2 & \$ 150,000 & ( \$ 100,000 ) \\\hline 3 & \$ 30,000 & \$ 0 \\\hline 4 & \$ 0 & \$ 30,000 \\\hline\end{array}$$

A) Choice 1
B) Choice 2
C) Choice 3
D) Choice 4