The division's book value and fair value less cost to sell on December 31 were $3,000,000 and $3,500,000, respectively. What before-tax amount(s) should Mercedes report as loss on discontinued operations in its 2018 income statement?

a.$2,000,000 loss

b.$2,500,000 loss

c.$500,000 gain included in continuing operations and a $2,000,000 loss from discontinued operations

d.No loss would be reported