On May 1, OG Clothing Co. agreed to sell the assets of its Formal Wear Division to Top Hat Inc. . The following additional facts pertain to the transaction: The Formal Wear Division qualifies as a component of the entity according to GAAP regarding discontinued operations. The book value of Formal Wear's assets totaled $48 million on December 31, 2021. Formal Wear's operating income was a pre-tax loss of $10 million in 2021. . OG's income tax rate is 25%. . Suppose that the Formal Wear Division's assets had not been sold by December 31, 2021, but were considered held for sale. Assume that the fair value of these assets was $80 million at December 31, 2021. In the income statement for the year ended December 31, 2021, OG Clothing Co. would report discontinued operations of a Multiple Choice None of these answer choices are correct. $16.5 million income. $10.0 million loss. $7.5 million loss