Pascoreli Clothing is a clothing component of Lucha Libre, Inc. Pascoreli has been losing $35,000 per month since April 1 20X7. On May 31, 20x8, Lucha Libres management committed to an immediate sale of Pascoreli. Management expects to find a buyer before March 31, 20x9. Lucha Libre has estimated Pascorelis net assets have a fair value $1,300,000 and the book value of the groups assets is $1,700,000. Lucha Libre sold Pascoreli on April 30, 20x9 for $1,100,000. What amount if any would Lucha Libre report from discontinued operations before taxes for the year ended December 31, 20x8

• A.

  (820,000)

• B.

  (400,000)

• C.

  (420,000)

• D.

  Not considered a discontinued opearations