An extraordinary loss of $250,000 that results in income tax savings of $60,000 should be reported as an extraordinary loss (net of tax) of $190,000 on the income statement.

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The extraordinary loss of $250,000 is reduced by the income tax savings of $60,000 to arrive at a net extraordinary loss of $190,000. This net amount should be reported on the income statement as an extraordinary loss (net of tax).

An Extraordinary Loss of $250,000 That Results in Income Tax