Regarding Discontinued Operations,which of the Following Statements Is Incorrect

question 113

Multiple Choice

Regarding discontinued operations,which of the following statements is incorrect?

• A) Gains and losses on the sale of plant assets and equipment are reported as Other Income and (Expenses).
• B) A loss on discontinued operations is reported with an addition for the applicable income tax.
• C) The sale of an identifiable division of the business is reported on the income statement under the category Discontinued Operations.
• D) The Discontinued Operations category of the income statement includes information about segments of the business that have been sold.

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Definitions:

Contract Rate

The interest rate specified in a contractual agreement, such as in a loan or bond.

Market Rate

The prevailing interest rate available in the marketplace for instruments of similar risk and maturity.

Coupon Bonds

Bonds that pay the holder a fixed interest rate (the coupon) over the bond's life, culminating in the repayment of the principal amount at maturity.

Interest Coupons

Certificates attached to bond certificates that represent the interest due on a payment date to the bondholder.