Which of the following material gains/losses would be disclosed as an extraordinary item on an entity's income statement?
A)a loss arising from the write-off of a large uncollectible accounts receivable balance
B)a loss arising from the expropriation of a manufacturing plant by a foreign government
C)a gain from sale of a component of the entity's business
D)a gain from the sale of manufacturing equipment no longer needed by the entity

Question

Quizplus · Accepted Answer

An expropriation of a manufacturing plant by a foreign government would be considered an unusual and infrequent event and therefore would qualify as an extraordinary item. The other choices would not be considered extraordinary items as they would be expected to occur in the normal course of business operations.

Which of the Following Material Gains/losses Would Be Disclosed as an Extraordinary