Smart Inc. has approved a formal plan to sell its division name division. A detailed plan has been approved by the board of directors and a buyer was confirmed. The division only has one asset on the books at $10 million. The estimated selling price is $9 million. The division has reported after tax operating loss of $2 million (net of tax recovery of $0.67 million) in the year. The company has reported Net Income of $5.5 million and tax rate of 25% for the year. What is the after-tax income from continuing operations to be reported on the income statement for the year?

a. $8.25 million

b. $2.75 million

c. $7.50 million

d. $8.5 million

e. $8.92 million