Choice "B" is correct. Ace's loss on discontinued operations should not exclude operating losses from the date the decision to dispose of the segment was made until the end of Year 1. All Year 1 operating losses should be included.
Choice "d" is incorrect. Employee relocation costs associated with the decision to dispose should be included in the loss from discontinued operations.
Choice "a" is incorrect. Additional pension costs associated with the decision to dispose should be included in the loss from discontinued operations.
Choice "c" is incorrect. Ace's loss on discontinued operations should include operating losses of the current period up to the date the decision to dispose of the segment was made and also after that date. All Year 1 operating losses should be included.