The gain on sale of machinery account would appear on the income statement as a:

Question

Quizplus · Accepted Answer

The gain on sale of machinery is related to the company's ongoing operations and should be included as a component of income from continuing operations on the income statement. Discontinued operations refer to the disposal of a significant part of the business, not just a single asset, and would not apply in this scenario. Gross margin refers to the difference between revenue and cost of goods sold, and does not relate to the sale of machinery. Prior-period adjustments relate to corrections of errors from previous financial statements and are not relevant in this case.

The Gain on Sale of Machinery Account Would Appear on the Income