Black & Decker Decides to Discontinue Producing Toasters in Lieu

Black & Decker decides to discontinue producing toasters in lieu of more versatile toaster ovens.In the process of discontinuing this line,the company disposes of the old equipment and buys new.The disposal of the old equipment would be reported in the income statement as

A) gain or loss on the sale of equipment as part of continuing operations.
B) gain or loss on the sale of production equipment as part of extraordinary gains and losses.
C) gain or loss on the disposal of discontinued business component.
D) income from operation of a discontinued business component.