Table 14-4 Crane Corporation Had Operating Income of $185,000, a Loss of Loss

Table 14-4
Crane Corporation had operating income of $185,000, a loss of $25,000 from a flood and a gain of $8,000 from the sale of a machine the business owned. You are preparing the 2017 income statement. Crane Corporation is in a 25% tax bracket.
-Refer to Table 14-4.How would the gain from the sale of the machine appear on a multiple-step year end income statement?

A) $8,000, as part of other gains and losses
B) $8,000, as a prior-period adjustment
C) $6,000, as part of other gains and losses
D) $6,000, as part of gross profit