Heavenly Taft, Inc. sold a division of its company during the year for a $400,000 gain. Prior to the date of sale, the year-to-date net loss for the division was $1,000,000. The company's tax rate is 30%. What will be reported on the income statement as a "special item?" O $420,000 loss O $1,000,000 discontinued operation loss less a $300,000 tax savings O $400,00 gain less $120,000 income tax O Both B and C