When the disposal of a component of an entity, the income statement should report both profit from continuing operations and profit (loss) from discontinued operations.

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When a component of an entity is disposed of, the income statement should report both profit from continuing operations and profit (loss) from discontinued operations. This is in accordance with accounting standards such as Generally Accepted Accounting Principles (GAAP) in the United States. The income from discontinued operations should be reported separately from income from continuing operations to provide investors with a better understanding of the company's financial performance.

When the Disposal of a Component of an Entity, the Income