Which of the following items should be classified as an extraordinary item on an income statement?
A) Gain on the sale of property, plant or equipment
B) Loss due to expropriation of property by a foreign government
C) Loss due to discontinued operations
D) Excess of the selling price over the cost of treasury stock

Question

Quizplus · Accepted Answer

Extraordinary items are events that are both unusual and infrequent. Expropriation by a foreign government is both unusual and infrequent, fitting the criteria for an extraordinary item.

Which of the Following Items Should Be Classified as an Extraordinary