Gains/losses on the early extinguishment of debt are reported as part of operating income in the income statement.Gains/losses on the early extinguishment of debt are reported as non-operating items in the income statement.

Question

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Gains/losses on the early extinguishment of debt are considered non-operating items as they are not part of the regular business activities of the company. Therefore, they are reported separately from operating income in the income statement.

Gains/losses on the Early Extinguishment of Debt Are Reported as Part