A company closes a facility and moves to a new location.How would a loss on the disposal of the equipment at the closed facility be reported on an income statement?

Question

Quizplus · Accepted Answer

The loss on the disposal of equipment at the closed facility would be reported as an operating expense in net profit from continuing operations, since it is part of the company's ongoing business activities and not a one-time event or an unusual transaction that would be reported as a component of discontinued operations or an extraordinary loss.

A Company Closes a Facility and Moves to a New