Which of the following amounts would be shown net of tax in the income statement?
A)The gain on the sale of a fixed asset.
B)The gain from the expropriation of land.
C)The loss from writing down obsolete inventory.
D)The loss incurred during a labour strike.

Question

Quizplus · Accepted Answer

The gain from the expropriation of land would be shown net of tax in the income statement because it is a non-operational event that is typically subject to different tax treatment and reporting requirements. Other options like gains on sales of fixed assets, losses from writing down inventory, or losses incurred during a labor strike are operational in nature and are not typically shown net of tax in the income statement.

Which of the Following Amounts Would Be Shown Net of Tax