On June 1,Team Shirts sold its surfboard operations and incurred a loss on the sale.This year's operating income or loss from surfboard operations before June 1 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 from the sale of the surfboard operations, along with the operating income or loss from those operations before the sale, would be reported as part of discontinued operations on the income statement. This is because the sale represents a strategic shift that has a major effect on the company's operations and financial results.

On June 1,Team Shirts Sold Its Surfboard Operations and Incurred