Black & Decker decides to discontinue producing toasters in lieu of more versatile toaster ovens. In the process of discontinuing this line, the company disposes of the old production equipment and buys new equipment. The disposal of the old equipment would be reported in the income statement as:

a. gain or loss on the sale of equipment as part of continuing operations.

b. income from operation of a discontinued business component.

c. gain or loss on the sale of production equipment as part of cost of goods manufactured and sold.

d. gain or loss on the disposal of discontinued business component.