If a stock investment is sold at a gain, the gain
A) is reported as operating revenue.
B) is reported under a special section, "Discontinued investments," on the income statement.
C) is reported in the Other Revenue and Gain section of the income statement.
D) contributes to gross profit on the income statement.

Question

Quizplus · Accepted Answer

The gain from selling a stock investment is not considered to be operating revenue and does not contribute to gross profit. It also does not fall under the category of "Discontinued investments." Therefore, the gain would be reported in the Other Revenue and Gain section of the income statement.

If a Stock Investment Is Sold at a Gain, the Gain