Benson Company sells a segment of its operations at a loss. Benson has not previously experienced such an event and does not expect to again.
The loss from the disposal of the segment should be reported in the income statement as:
A) An extraordinary item
B) A separate amount in a discontinued operations section
C) A separate amount in net income from continuing operations
D) As part of cost of goods sold
E) None of the above

Question

Quizplus · Accepted Answer

The loss from the disposal of a segment should be reported as a separate amount in a discontinued operations section, as it relates to the disposal of a component of the business.

Benson Company Sells a Segment of Its Operations at a Loss