If an investment in an associate is sold at a gain, the gain
A) is reported as operating revenue.
B) is reported under a special section, "Discontinued Investments," on the income statement.
C) is reported in the Other Revenues and Gains section on the income statement.
D) contributes to gross profit on the income statement.

Question

Quizplus · Accepted Answer

The gain from the sale of an investment in an associate is typically reported in the Other Revenues and Gains section on the income statement, as it is not part of the company's primary operations.

If an Investment in an Associate Is Sold at a Gain