Extraordinary gains and losses are shown "net of tax" on the income statement.

Name: Extraordinary gains and losses are shown "net of tax" on the income statement.
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Question

Quizplus · Accepted Answer

Extraordinary gains and losses, which are rare and unusual events not related to the normal operations of a business, are shown net of tax on the income statement. This means that the impact of taxes on these gains or losses has already been factored into their reported amounts.

Extraordinary Gains and Losses Are Shown "Net of Tax" on the Income