Gains and losses on the sale of plant assets are always reported as discontinued operations.

Question

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Gains and losses on the sale of plant assets are reported on the income statement as part of "Other Income/Expense," not as discontinued operations unless the plant asset sale is part of a significant and separate restructuring of the company's business activities. Discontinued operations refer to the disposal of a major component of a company's business, such as a product line or subsidiary.

Gains and Losses on the Sale of Plant Assets Are