One of Cheetah Corp.'s assets was expropriated by government authorities.The following additional information is available: Under ASPE, this situation would be reflected in the company's financial statements as a $1,800,000
A)gain that would be included in other comprehensive income.
B)gain that would be included in net income.
C)gain from discontinued operations.
D)gain that would appear on the statement of shareholders' equity.

Question

One of Cheetah Corp.'s assets was expropriated by government authorities.The following additional information is available:  Under ASPE, this situation would be reflected in the company's financial statements as a $1,800,000
A)gain that would be included in other comprehensive income. 
B)gain that would be included in net income. 
C)gain from discontinued operations. 
D)gain that would appear on the statement of shareholders' equity.

Quizplus · Accepted Answer

Under ASPE, the expropriation of an asset by government authorities is considered a gain on disposal and should be recognized in net income.