When a Company Discontinues an Operation and Disposes of the Discontinued

question 52

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 other income and expense item.
• C) an amount after continuing operations and before net income.
• D) a bulk sale of plant assets included in income from continuing operations.
• ^S56. Gains or losses on the disposal of investments should be shown in the income statement

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Definitions:

N-butyl Iodide

An organic compound with the chemical formula CH3(CH2)3I, used in organic synthesis.

Carbocation

A positively charged ion (cation) in which the charge is on a carbon atom, often an intermediate in organic reactions.

Carbanion

An organic ion in which a carbon atom has three bonds and bears a negative charge, often an intermediate in organic reactions.

Free Radical

Highly reactive atoms or molecules with unpaired electrons, involved in a variety of chemical processes including polymerization and combustion.