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Problem 1: On February 2, Flint Corp.'s board of directors voted to discontinue operations of its frozen food division and to sell the division's assets on the open market as soon as possible. The division reported net operating losses of $20,000 in January and $30,000 in February. On February 26, sale of the division's assets resulted in a gain of $90,000. Ignoring income taxes, what amount of gain from discontinued operations should Flint recognize in its income statement for the three months ended March 31?
A. $0 B. $40,000 C. $60,000 D. $90,000
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