Nelly company sold its cattle ranching component on June 30, 2016, for a gain of $1,000,000. From January through June, the component had sustained operating income of $300,000. The income tax rate is 35%. How should Nelly report the income on the sale on its income statement?

A. As a net of taxes gain of $845,000 after income from continuing operations

B. As $300,000 operating income and a $1,000,000 gain on sale of component

C. As $1,300,000 gain in operating income

D. As $195,000 operating income and a $650,000 gain on sale of the component