On December $31,$ Year $1,$ the Board of Directors of Maxy Manufacturing, Inc. committed to a plan to discontinue the operations of its Alpha division. The decision represents a major strategic shift and will have a significant effect on its operations and financial results. Maxy estimated that Alpha's Year $2$ operating loss would be $$500,000$ and that the fair value of Alpha's facilities was $$300,000$ less than their carrying amounts. The estimate for Year $2$ turned out to be correct. Alpha's Year $1$ operating loss was $$1,400,000,$ and the division was actually sold for $$400,000$ less than its carrying amount. Maxy's effective tax rate is $30\%.$

In its Year $2$ income statement, what amount should Maxy report as loss from discontinued operations? And why is the loss on disposal $$100,000$

A$.$ $$350,000$

B$.$ $$500,000$

C$.$ $$420,000$

D$.$ $$600,000$