A company that discontinues and disposes of an operation component) should include the gain or loss on sale in the income statement as an)
A) prior-period adjustment.
B) a component of other comprehensive income.
C) an amount that is reported after income from continuing operations but before net income.
D) bulk sale of fixed assets included in income from continuing operations.

Question

Quizplus · Accepted Answer

The gain or loss on the sale of a discontinued operation is reported in the income statement after income from continuing operations but before net income. This presentation separates the results of ongoing operations from those of discontinued components, providing a clearer view of the company's continuing performance.

A Company That Discontinues and Disposes of an Operation Component)