On August 1, 2018, Juarez Corporation adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2019. On January 31, 2019, Juarez's fiscal year-end, the following information relative to the discontinued division was provided:

Operating loss Feb. 1, 2018 to Jan. 31, 2019 $400,000

Estimated operating losses, Feb. 1 to June 30, 2019 100,000

Excess of book value over fair value less cost to sell of assets

at Jan. 31, 2019 60,000

Juarez's income tax rate is 35%. In its income statement for the year ended January 31, 2019, Juarez would report income (loss) on discontinued operations of:

A. $299,000.

B. $(221,000).

C. $221,000.

D. $(621,000).

E. $(299,000).