Which of the following items would be reported net of tax on the face of the income statement?
A) Discontinued operations
B) Unusual gain
C) Change in collectability of receivables
D) Prior period adjustment

Question

Quizplus · Accepted Answer

Discontinued operations are reported net of tax on the face of the income statement. This allows for comparability between companies with varying tax rates. Unusual gains, changes in collectability of receivables, and prior period adjustments are all reported before tax.

Which of the Following Items Would Be Reported Net of Tax