All of the following components are shown in the income statement net of applicable income taxes except
A) gain or loss on sale of plant assets.
B) cumulative effect of a change in accounting principle.
C) discontinued operations.
D) extraordinary gain or loss.

Question

Quizplus · Accepted Answer

The gain or loss on sale of plant assets is not shown net of income taxes; instead, it is shown as a separate line item before the income tax expense. The other three components listed (cumulative effect of a change in accounting principle, discontinued operations, and extraordinary gain or loss) are shown net of applicable income taxes on the income statement.

All of the Following Components Are Shown in the Income