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 flood loss appear on the year-end income statement?

A) $25,000 loss, as part of other gains and losses
B) $18,750 loss, as an extraordinary item
C) $25,000 loss, as a prior-period adjustment
D) $18,750 loss, as part of income from continuing operations