Queen Corporation decided to sell its furniture business segment for $400,000, on September 1, Year 1, which is also the disposal date. The book value of the segment's net assets is $500,000 on this date. The pre-tax income for the segment for the period January 1 September 1, Year 1, was $150,000. Assuming a tax rate of 40%, choose the correct reporting for discontinued operations in the income statement of Queen Corporation, for the year ended December 31, Year 1.

	Income (loss) from	Gain (loss) from disposal
	Discontinued operations	of discontinued operations
1	$ 90,000	($ 60,000)
2	$150,000	($100,000)
3	$ 30,000	$0
4	$0	$ 30,000

		Choice 1
		Choice 2
		Choice 3
		Choice 4