All of the following components are shown in the income statement net of applicable income taxes EXCEPT
A) discontinued operations.
B) cumulative effect of a change in accounting principle.
C) gain or loss on sale of plant assets.
D) extraordinary gain or loss.

Question

Quizplus · Accepted Answer

The gain or loss on sale of plant assets is not shown net of applicable income taxes in the income statement. It is shown as a separate line item in the income statement. The other options (discontinued operations, cumulative effect of a change in accounting principle, extraordinary gain or loss) are shown net of applicable income taxes in the income statement.

All of the Following Components Are Shown in the Income