If total assets equal $336,000 and total owners' equity equal $115,500, then total liabilities must equal:

A) $451,500.

B) $220,500.

C) Cannot be determined from the information given.

D) $115,500.

Family Fashions Corporation discontinued Kid-Choice, its entire line of children's clothing, in November of 2015. Prior to the disposal, Kid-Choice generated a loss of $600,000 (net of tax) for the period from January through the sale date. Because of the value of the real estate and machinery, there was a gain of $850,000 (net of tax) on the actual sale. How should this situation be reported in the financial statements of Family Fashions for 2015?

A) A $600,000 loss should be included in income from operations and a $850,000 gain should be reported in the "discontinued operations" section of the income statement.

B) A $250,000 gain should be included in the 2015 income statement as an extraordinary item.

C) A $250,000 gain should be in the "discontinued operations" section of the income statement.

D) A $250,000 adjustment to beginning retained earnings should be in the statement of retained earnings.