Which of the Following Is a Required Disclosure in the Income

question 131

Multiple Choice

Which of the following is a required disclosure in the income statement when reporting the disposal of a component of the business?

• A) The gain or loss on disposal should be reported as an extraordinary item.
• B) Results of operations of a discontinued component should be disclosed immediately below extraordinary items.
• C) Earnings per share from continuing operations, discontinued operations, and net income should be disclosed on the face of the income statement.
• D) The gain or loss on disposal should not be segregated, but should be reported together with the results of continuing operations.