Which of the Following Statements Concerning the Sale of a Business

question 47

Multiple Choice

Which of the following statements concerning the sale of a business component is true?

• A)When the sale date for the component is after the current year end, depreciation expense for the component's assets is included in the discontinued operations section of the income statement.
• B)The results of discontinued operations should be reported on the income statement after extraordinary items but before cumulative effect of a change in accounting principle.
• C)The taxed effect of component-disposition gains or losses need not be disclosed on the face of the income statement.
• D)The Financial Accounting Standards Board concluded that component-disposition gains or losses should be classified as extraordinary items.