Problem
LeBron's Bookstores has two divisions: media and books. The media division had another great year with net sales of $14 million, cost of goods sold of $8 million, operating expenses of $3 million, and income tax expense of $900,000. The book division did not do as well and was sold during the year. The loss from operations and sale of the book division was $400,000 before taxes and $280,000 after taxes.
Assuming the sale of the book division is reported as a discontinued operation, at what amount did LeBron's Bookstores report net income?