Which of the following items is shown after the computation of income tax expense?
A)Unusual or infrequent events
B)Non operating revenues
C)Gain of loss on disposal of capital assets
D)Gain or loss on disposal of discontinued operations

Question

Quizplus · Accepted Answer

Gain or loss on disposal of discontinued operations is shown after the computation of income tax expense because it is part of the income or loss from discontinued operations, which is reported separately from continuing operations and after the income tax expense in the income statement. This helps users of financial statements to distinguish between the results of ongoing operations and the effects of disposals of entire lines of business.

Which of the Following Items Is Shown After the Computation