A Corporation Closes a Facility and Moves to a New

question 160

Multiple Choice

A corporation closes a facility and moves to a new location. How would a loss on the disposal of the equipment at the closed facility be reported on an income statement?

• A) As an operating expense in net income from continuing operations
• B) As a component of discontinued operations
• C) As an extraordinary loss
• D) As another loss in net income from continuing operations

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Definitions:

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the laws across the states.

Parties

in legal terms involve individuals, companies, or entities who are directly involved in a lawsuit or legal agreement.

Certify

To officially declare or verify that something is true, accurate, or meets a specific standard.

UCC

Stands for the Uniform Commercial Code, which is a comprehensive set of laws governing commercial transactions in the United States, including sales, leases, negotiable instruments, and secured transactions.