Windsor, Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $222000 loss in the year of disposal. The loss on disposal of the segment was $122000. If the tax rate is 32%, and income before income taxes was $1622000 then:

net income is $1278000.

the losses from discontinued operations are reported net of income taxes at $344000.

the income tax expense on the income before discontinued operations is $454080.

the income from continuing operations is $1102960.