Over the Top,Inc.sells one of its four swing sets.The company regularly sells seasonal outdoor furniture.How shall the gain on the sale be classified on the income statement?
A)Extraordinary item
B)Ordinary income
C)Accounting Change
D)Discontinued Operation
E)Recapture

Question

Quizplus · Accepted Answer

Since selling seasonal outdoor furniture is a regular part of Over the Top, Inc.'s business, the gain on the sale of one of its swing sets should be classified as ordinary income on the income statement.