During 2020, LOLO Corp. disposed of Segma Division, a major component of its business. LOLO realized a gain of $3,000,000, before taxes, on the sale of Segma's assets. LOLO's operating losses, before taxe, were $3,500,000 in 2020. How should these facts be reported in LOLO's income statement for 2020 if the tax rate is 20%?

Total Amount to be Included in

Income from

Results of

Continuing Operations

Discontinued Operations

400,000 loss

0

$3,500,000 loss

$3,000,000 gain

0	400,000 loss

3,000,000 gain

3,500,000 loss