Which of the following is correct?
A) Discontinued operations are shown as the last category after income from continuing operations.
B) The discontinued operations section of the income statement consists only of the gain or loss on disposal of the discontinued component net of the tax effect.
C) The discontinued operations section of the income statement consists only of the income or loss from operating the discontinued component net of the tax effect.
D) The discontinued operations section of the income statement consists of the income or loss from operating the discontinued component net of the tax effect as well as the gain or loss on disposal of the discontinued component net of the tax effect.

Question

Quizplus · Accepted Answer

The discontinued operations section of the income statement consists of both the income or loss from operating the discontinued component net of the tax effect, as well as the gain or loss on disposal of the discontinued component net of the tax effect. It is shown after income from continuing operations. Therefore, option D is the correct choice.

Which of the Following Is Correct