Companies always treat gains or losses from an involuntary conversion as part of discontinued operations.

Question

Quizplus · Accepted Answer

Gains or losses from involuntary conversions (such as from natural disasters, theft, or condemnation) are not automatically treated as part of discontinued operations. They are typically recognized in the income from continuing operations unless they are directly associated with a component of the business that has been classified as discontinued.

Companies Always Treat Gains or Losses from an Involuntary Conversion