In reporting discontinued operations the income statement should show in a special section
1) gains on the disposal of a discontinued component.
2) losses on the disposal of a discontinued component.
A) 1 only.
B) 2 only.
C) neither 1 nor 2.
D) both 1 and 2.

Question

Quizplus · Accepted Answer

The income statement should include both gains and losses on the disposal of a discontinued component in a special section to fully reflect the impact of the discontinued operations on the financial performance of the company. This is in accordance with the accounting rules and principles set forth by the Financial Accounting Standards Board (FASB).

In Reporting Discontinued Operations the Income Statement Should Show in a Special