Lillys Boutique has two divisions: clothing and shoes. The shoes division had another good year with net sales of $80,000, cost of goods sold of $35,000, operating expenses of $10,000, and income tax expense of $5,000. The clothing division did not do as well and was sold during the year. The loss from operations and sale of the clothing division was $12,000 before taxes and $8,000 after taxes. Assuming the sale of the clothing division is reported as a discontinued operation, at what amount did Lillys Boutique report net income?

Multiple Choice

• $18,000

• $22,000

• $30,000

• $38,000