How are discontinued operations and extraordinary items reported on the income statement?
A)Discontinued operations and extraordinary items are added together as one line item.
B)Both items are reported net of taxes and as separate line items.
C)Discontinued operations are reported net of taxes as a separate line item.Extraordinary items are not reported net of taxes,but they are reported as a separate line item.
D)Discontinued operations are not reported net of taxes,but they are reported as a separate line item.Extraordinary items are reported net of taxes as a separate line item.
E)Both items are not reported on the income statement.

Question

Quizplus · Accepted Answer

Both discontinued operations and extraordinary items are reported net of taxes and as separate line items on the income statement. This allows users of financial statements to easily identify and assess the impact of these items on the company's financial performance.

How Are Discontinued Operations and Extraordinary Items Reported on the Income