Nonrecurring items such as discontinued operations and extraordinary events are presented above the income tax expense line on the income statement because they are subject to income taxes just like any other sources of income.
BT: Comprehension

Question

Quizplus · Accepted Answer

Nonrecurring items like discontinued operations and extraordinary events are presented below the income tax expense line on the income statement because they are reported net of tax effects, not above it.

Nonrecurring Items Such as Discontinued Operations and Extraordinary Events Are