If an Investment in an Associate Is Sold at a Gain

question 38

Multiple Choice

If an investment in an associate is sold at a gain, the gain

• A)is reported as operating income.
• B)is reported under a special section, "Discontinued Investments," on the statement of income.
• C)is reported in the Other Income and Gains section on the statement of income.
• D)contributes to gross profit on the statement of income.

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Definitions:

Ownership Shares

Portions or fractions of equity in a company, providing the shareholder certain rights, such as dividends and voting power.

Family Business Feud

Conflicts or disputes that occur within a family-run company, often relating to leadership, succession, or financial issues.

Work Responsibilities

The specific tasks, duties, and functions assigned to an employee or a team within the workplace, expected to be fulfilled to achieve organizational goals.