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 $1,000,000 are sold for $750,000.The division generated an operating loss of $145,000 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) $105,000 loss
B) $250,000 loss
C) $395,000 loss
D) $145,000 gain