Discontinued operations is shown net of tax on the income statement.

Name: Discontinued operations is shown net of tax on the income statement.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Discontinued operations are reported net of tax on the income statement. This means that the amount of tax related to the discontinued operation is deducted from the income or loss on the operation before it is reported on the income statement. Therefore, the net amount is reported as a separate line item on the income statement.

Discontinued Operations Is Shown Net of Tax on the Income