A company that discontinues and disposes of an operation (component)should include the gain or loss on sale in the income statement as a(n)
A)prior-period adjustment
B)extraordinary item
C)amount after income from continuing operations and before extraordinary items
D)bulk sale of fixed assets included in income from continuing operations

Question

Quizplus · Accepted Answer

According to ASC 205-20-45-1, the gain or loss on the sale of a discontinued operation should be reported as a separate line item after income from continuing operations but before extraordinary items. Therefore, choice C is the best answer.

A Company That Discontinues and Disposes of an Operation (Component)should