Nelly Company sold its cattle ranching component on June 30, 2016, for a gain of $1,000,000. From January through June, the component had sustained operating income of $300,000. The income tax rate is 35%. How should Nelly report the income and the sale on its income statement?
A) as $300,000 operating income and a $1,000,000 gain on sale of component
B) as a $1,300,000 gain in operating income
C) as a net of tax gain of $845,000 after income from continuing operations
D) as $195,000 operating income and a $650,000 gain on sale of the component

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The Answer of Nelly Company sold its cattle ranching component on June 30, 2016, for a gain of $1,000,000. From January through June, the component had sustained operating income of $300,000. The income tax rate is 35%. How should Nelly report the income and the sale on its income statement?
A) as $300,000 operating income and a $1,000,000 gain on sale of component
B) as a $1,300,000 gain in operating income
C) as a net of tax gain of $845,000 after income from continuing operations
D) as $195,000 operating income and a $650,000 gain on sale of the component

Nelly Company Sold Its Cattle Ranching Component on June 30