Which of the following items should be classified as an unusual item on an income statement?
A) gain on the retirement of a bond payable
B) gain on a sale of a long-term investment
C) loss due to a discontinued operation in Colorado
D) selling treasury stock for more than the company paid for it

Question

Quizplus · Accepted Answer

Loss due to a discontinued operation is typically an unusual item that is not related to a company's regular business activities. The other options (gain on retirement of a bond payable, gain on sale of a long-term investment, selling treasury stock for more than the company paid for it) relate to the normal course of business and would not be considered unusual items.

Which of the Following Items Should Be Classified as an Unusual