When a plant asset is disposed of, a gain or loss may result. The gain or loss would be classified as an extraordinary item on the income statement if it resulted from

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According to GAAP, a gain or loss resulting from an involuntary conversion (such as an asset being destroyed in a fire) can be classified as an extraordinary item on the income statement if the conditions of the disposal are unusual and infrequent in nature.

When a Plant Asset Is Disposed Of, a Gain or Loss