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During 2020, Blossom Company disposed of Cynthia Division, a major component of its business

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During 2020, Blossom Company disposed of Cynthia Division, a major component of its business. Blossom realized a gain of $2940000, net of taxes, on the sale of Cynthia's assets. Cynthia's operating losses, net of taxes, were $3410000 in 2020. How should these facts be reported in Blossom's income statement for 2020?

 

  Total Amount to be Included in

  Income from Results of

  Continuing Operations Discontinued Operations

 

 

 

 

$3410000 loss

  $2940000 gain

 

 

470000 loss

  0

 

 

0 470000 loss

 

 

2940000 gain

3410000 loss