1.Tinky-Winky's committed to sell its Dipsy division for $800,000 on October 1, 2001.The book value of Dipsy's assets at October 1 was $900,000.The closing date on the sale is expected to be March 15, 2002.Year-to-date operating results for Dipsy were a loss of $30,000 through October 1 but operating results for the rest of 2001 resulted in income of $10,000.Tinky-Winky estimates that Dipsy will lose an additional $20,000 from January 1 through March 15 of 2002.The tax rate is 30%.The correct amount to be reported in the Tinky-Winky income statement for 2001 as discontinued operations is:

Income(loss) fromGain(loss) from disposal

Discontinued operations

a.($30,000)($115,000)

b. ($21,000)($ 63,000)

c.($21,000)($ 77,000)

d.($9,000)($ 37,000)

e.($14,000)($84,000