Why do I have to multiply by (1-.40) instead of multiplying for the 40%?

Your Answer Incorrect Regal Corporation has a component that is a discontinued operation. The revenues and expenses of the component were $120,000 and $100,000 respectively The component was sold with a resulting loss of $80,000. The tax rate is 40%. What is the total gain or loss on discontinued operations (net of tax effects that will be reported on the income statement? O $84,000 loss ($20,000 -80,000) x (1-40) - $36,000 loss O $36,000 loss $12.000 gain ($20,000 - 80,000) X (-40) 5.36 O $48,000 loss (520.000 - 50.000) x (140) 536 Ron Correct Answer $36,000 loss