If a company reports an extraordinary gain, EPS must be disclosed for both income from ordinary continuing operations and net income.

Question

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When a company reports an extraordinary gain, EPS (earnings per share) must be disclosed for both income from ordinary continuing operations and net income. This is because the gain is considered an unusual and infrequent item that can distort the company's normal operating results, and investors need to see how it affects overall profitability. By providing EPS for both income figures, investors can more accurately assess the company's performance and make informed investment decisions.

If a Company Reports an Extraordinary Gain, EPS Must Be