Which of the following items should be classified as an extraordinary item on a corporate income statement?

Question

Quizplus · Accepted Answer

Extraordinary items are events that are both unusual in nature and infrequent in occurrence. Loss due to takeover of property by a foreign government meets both criteria and should be classified as an extraordinary item. The other options such as excess of the selling price over the cost of treasury stock, gain on the sale of a long-term investment, and loss due to discontinued operations do not qualify as extraordinary items.

Which of the Following Items Should Be Classified as an Extraordinary