A loss due to a discontinued operation should be reported on the income statement
A) above income from continuing operations
B) without related tax effect
C) below income from continuing operations
D) as an operating expense

Question

Quizplus · Accepted Answer

A loss from a discontinued operation should be reported below income from continuing operations on the income statement according to GAAP. It should also include any tax effects related to the discontinuation. It is not reported as an operating expense as it is not a part of the company's ongoing operations.

A Loss Due to a Discontinued Operation Should Be Reported