Popson Inc.incurred a material loss which was not unusual in character,but was clearly an infrequent occurrence.This loss should be reported as:

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According to GAAP (Generally Accepted Accounting Principles), an infrequent, material loss that is not unusual in character should be reported as part of other revenues and expenses on the income statement. It should not be reported as an extraordinary loss or a loss from discontinued operations unless it meets the specific criteria for those categories. A separate line item in retained earnings is not appropriate, as this account is used to report cumulative profits and losses from all sources, not just one specific event.