Which of the following is an example of an extraordinary item in reporting results of operations?
A)A loss incurred because of a strike by employees
B)The write-off of deferred research and development costs believed to have no future benefit
C)A gain resulting from the devaluation of the U.S.dollar
D)A gain resulting from the state exercising its right of eminent domain on a piece of land used as a parking lot

Question

Quizplus · Accepted Answer

A gain resulting from the state exercising its right of eminent domain on a piece of land used as a parking lot is an example of an extraordinary item. This is because it is an unusual and infrequent event that is not related to the ordinary operations of the business. The other options, such as a loss from a strike or the write-off of research and development costs, would not typically be considered extraordinary items.

Which of the Following Is an Example of an Extraordinary