Stellar, Inc. decided on January 1 to discontinue its telescope manufacturing division. On July 1, the division's assets with a book value of $1,260,000 are sold for $900,000. Operating income from January 1 to June 30 for the division amounted to $195,000. Ignoring income taxes, what total amount should be reported on Stellar's income statement for the current year under the caption, Discontinued Operations?

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The loss on disposal of the division is $1,260,000 - $900,000 = $360,000. The operating income from January 1 to June 30 is $195,000. The total amount to be reported on Stellar's income statement for the current year under the caption, Discontinued Operations is $360,000 loss.