Clearwater, Inc

Clearwater, Inc. decided to split-off its subsidiary Kamiah Co. On January 2017, Clearwater, Inc. tendered 18,000 shares of Kamiah Co.'s $5 par value stock to its current shareholders in a non pro rata distribution. On the day of the offer, Kamiah Co. was trading for $81 a share. Clearwater, Inc. had the investment in Kamiah Co. recorded at $1,875,000 on its balance sheet.
What would Clearwater, Inc. record on its income statement as a result of this transaction?

A) $417,000 gain
B) $417,000 loss
C) $ 90,000 loss
D) $ 90,000 gain
E) No gain or loss is recorded on split-offs.