Which of the following should be reported net of the related income tax effect on the income statement?
A) sale of an inventory item at a loss
B) loss due to theft
C) loss due to a discontinued operations of the business
D) sale of a temporary investment at a loss

Question

Quizplus · Accepted Answer

Loss due to discontinued operations of the business should be reported net of the related income tax effect on the income statement, as per ASC 205-20-45-7. The other options - sale of an inventory item at a loss, loss due to theft and sale of a temporary investment at a loss - should be reported before the related income tax effect.

Which of the Following Should Be Reported Net of the Related