When a segment of a business has been discontinued during the year,the gain or loss on disposal should:
A)Include operating losses of the current period up to the measurement date.
B)Be net of applicable income taxes.
C)Be reported as an infrequent item.
D)Include operating losses during the phase-out period.

Question

Quizplus · Accepted Answer

The gain or loss on disposal of a discontinued segment should be reported net of applicable income taxes to reflect the actual impact on the company's financial position.

When a Segment of a Business Has Been Discontinued During