On May 1, Tango 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.

Tango'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 $40 million at December 31, 2021. In the income statement for the year ended December 31, 2021, Tango Co. would report discontinued operations of: