During 2007, Gomez Corporation Disposed of Pine Division, a Major $\text { Total Amount to be Included in }$

During 2007, Gomez Corporation disposed of Pine Division, a major component of its business.Gomez realized a gain of $1,200,000, net of taxes, on the sale of Pine's assets.Pine's operating losses, net of taxes, were $1,400,000 in 2007.How should these facts be reported in Gomez's income statement for 2007? $\text { Total Amount to be Included in }$
$\begin{array}{cc} &\text {Income from }& \text {Results of }\\&\text { Continuing Operations } & \text { Discontinued Operations } \\\hline \end{array}$

A) $~~~~~~~~$ $ 1,400,000 loss $~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~~~~~~~$ $ 1,200,000 gain
B) $~~~~~~~~$ 200,000 loss $~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~~~~~~~$ 0
C) $~~~~~~~~$ 0 $~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~~ ~~~$ 200,000 loss
D) $~~~~~~~~$ 1,200,000 qain $~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~~~~~~~$$~~ ~ ~$ 1,400,000 loss