Gains and losses from the disposal of old plant and equipment are reported as other gains or losses as part of net income from continuing operations.

Question

Quizplus · Accepted Answer

Gains and losses from the disposal of old plant and equipment are indeed reported as other gains or losses within the income statement, and they are included in the calculation of net income from continuing operations. This treatment aligns with generally accepted accounting principles (GAAP), which require that such transactions be reflected in the performance of the ongoing operations of the business.

Gains and Losses from the Disposal of Old Plant and Equipment