When a Company Discontinues an Operation and Disposes of the Discontinued

question 35

Multiple Choice

When a company discontinues an operation and disposes of the discontinued operation (component) , the transaction should be included in the income statement as a gain or loss on disposal reported as

• A)a prior period adjustment.
• B)an extraordinary item.
• C)an amount after continuing operations and before extraordinary items.
• D)a bulk sale of plant assets included in income from continuing operations.

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