Parrish, Inc. decided on January 1 to discontinue its telescope manufacturing division. On July 1, the divisions assets with a book value of $1,250,000 are sold for $850,000. Operating income from January 1 to June 30 for the division amounted to $125,000. Ignoring income taxes, what total amount should be reported on Parrishs income statement for the current year under the caption, Discontinued Operations?

$125,000

$275,000 loss

$400,000 loss

$525,000