Flightplan Company has two divisions, Uno and Dos. Both qualify as business components. In 2018, the company decided to dispose of the assets and liabilities of the Dos division and it is probable that the disposal will be completed early next year. The revenue and expenses of Flightplan Company are as follows:

TOTAL REVENUE	2018	2017
UNO	10,000,000	9,200,000
DOS	7,000,000	10,200,000

TOTAL EXPENSE	2018	2017
UNO	8,800,000	8,200,000
DOS	7,800,000	9,000,000

During the latter part of 2018, the company disposed of a portion of Dos division and recognized a pre-tax loss of P4,000,000 on the disposal. The income tax rate is 30%

1. What amount should be reported as loss from discontinued operation in 2018? A. 2,800,000 B. 3,360,000 C. 4,000,000 D. 4,800,000

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