If a common stock investment is sold at a gain, the gain

Question

Quizplus · Accepted Answer

The gain from the sale of a common stock investment would be reported in the Other Revenue and Gain section of the income statement. It is not considered operating revenue as it is not a part of the regular operations of the business. It is also not reported under the special section for discontinued investments as the investment is being sold voluntarily and is not being discontinued by the company. Finally, it does not contribute to gross profit, which is calculated as revenue minus cost of goods sold.

If a Common Stock Investment Is Sold at a Gain