When a corporation discontinues a segment of its operations at a loss, the loss should be reported as a separate item after income from continuing operations on the income statement.

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When a corporation discontinues a segment of its operations at a loss, the loss should be reported as a separate item after income from continuing operations on the income statement. This is in accordance with accounting standards to provide clear and transparent reporting to stakeholders.

When a Corporation Discontinues a Segment of Its Operations at a Loss