Sample CPA Exam Question

During January 2008, Doe Corp. agreed to sell the assets and product line of its Hart division. The sale was completed on January 15, 2009; on that date, Doe recognized a gain on disposal of $900,000. Hart’s operating losses were $600,000 for 2008 and $50,000 for the period January 1 through January 15, 2009.The income tax rate is 40%.What amount of net gain (loss) from discontinued operations should be reported in Doe’s comparative 2009 and 2008 income statements?