On March 31, 2022, FP Ltd. decided to discontinue its wood division. The division, considered a reporting segment, was sold on September 1, 2022. Division assets with a carrying value of $515,000 were sold for $375,000. Operating income from January 1 to August 31 for the division was $32,750. Assuming an income tax rate of 20%, what amount should be reported on FP's income statement for the year ended December 31, 2022, under the caption "discontinued operations"?

Question 22Select one:

a.

$32,750 gain

b.

$107,250 loss

c.

$128,700 loss

d.

$85,500 loss