Team Shirts sold its surfboard operations for $125,000 and incurred a loss of $47,000 on the sale.This loss would be reported on the income statement as part of ________.
A)discontinued operations
B)extraordinary items
C)other revenues and expenses
D)income from continuing operations

Question

Quizplus · Accepted Answer

The loss on the sale of the surfboard operations is considered a discontinued operation, which is a major component of a company's operations that has been disposed of or is being held for sale. It should be reported separately on the income statement as a part of discontinued operations.

Team Shirts Sold Its Surfboard Operations for $125,000 and Incurred