On the income statement, how should the transaction be reported when a company discontinues an operation and disposes of the discontinued operation $($component$)?$

Select answer from the options below

As a gain or loss on disposal reported as a prior period adjustment.

As a gain or loss on disposal reported as an extraordinary item.

As a gain or loss on disposal reported as a bulk sale of plant assets included in income from continuing operations.

As a gain or loss on disposal reported as an amount after continuing operations.