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ABC Company discontinued operations in 20Y2. During the year, the company had a pre-tax operating loss of $10,000. They sold the component during 20Y2 for

ABC Company discontinued operations in 20Y2. During the year, the company had a pre-tax operating loss of $10,000. They sold the component during 20Y2 for $100,000. The component had a historical cost of $200,000 and accumulated depreciation of $125,000. Determine the total income or loss on discontinued operations for 20Y2. The company's tax rate is 30%.

1. $15,000

2. $10,500

3. $63,000

4. $17,500

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