A loss from early extinguishment of debt,if material,should be reported as a component of income
A)After cumulative effect f accounting changes and after discontinued operations of a segment of a business
B)After cumulative effect of accounting changes and before discontinued operations of a segment of a business
C)Income from continuing operations
D)Before cumulative effect of accounting changes and before discontinued operation s of a segment of a business

Question

Quizplus · Accepted Answer

The loss from early extinguishment of debt should be reported as a separate item within the income statement, and would likely be reported as a deduction from income from continuing operations. It would not be reported after cumulative effect of accounting changes or discontinued operations, as these relate to separate events in the company's operations. It would also not be reported before cumulative effect of accounting changes, as this item would likely be reported at the bottom of the income statement after all other items.

A Loss from Early Extinguishment of Debt,if Material,should Be Reported