On November 1, Y1, a company adopted a plan to dispose of a component of the business. The component qualifies for

discontinued operations treatment. During Y1, the component had pretax operating losses of $120,000. The components

assets have a book value of $800,000 on December 31, Y1. A recent market value analysis of these assets placed their

estimated selling price at $500,000, less a 5% brokerage commission. Management appropriately determines that these assets

are impaired and expects to find a buyer for the component and complete the sale early in Y2. Use a 20% income tax rate and

determine the gain or loss from discontinued operations under either of the following two assumptions

A. A recent market value analysis of these assets placed the estimated selling price at $500,000.

B. A recent market value analysis of these assets placed the estimated selling price at $1,000,00