Howard Inc. had prepaid rent of $75,000 and $80,000 at the end of 2017 and 2018, respectively. During 2018, Howard recorded $240,000 in rent expense in its income statement. Cash outflows for rent in 2018 were: $235,000 $240,000 $245,000 $250,000. On May 1, Foxtrot Co. agreed to sell the assets of its Footwear Division to Albanese Inc. for $80 million. The sale was completed on December 31, 2018. . The following additional facts pertain to the transaction: The Footwear Division qualifies as a component of the entity according to GAAP regarding discontinued operations. The book value of Footwear's assets totaled $48 million on the date of the sale. Footwear's operating income was a pre-tax loss of $10 million in 2018. Foxtrot's income tax rate is 40%. In the income statement for the year ended December 31, 2018, Foxtrot Co. would report: Income (loss) on its total operations for the year without separation. Income (loss) on its continuing operation only. Income (loss) from its continuing and discontinued operations separately. Income and gains separately from losses