The sale or other disposition of a segment of a business is recorded as an extraordinary gain or loss.

Question

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The sale or other disposition of a segment of a business is not recorded as an extraordinary gain or loss. It is recorded as a regular gain or loss on the income statement. Extraordinary gains and losses are reserved for events that are both unusual in nature and infrequent in occurrence, such as a major natural disaster or significant legal settlement.

The Sale or Other Disposition of a Segment of a Business