A Loss Due to Discontinued Operations Should Be Reported on the Income

question 107

Multiple Choice

A loss due to discontinued operations should be reported on the income statement

• A) before extraordinary items.
• B) before income taxes expense.
• C) after net income.
• D) after extraordinary items.

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Definitions:

Police Auction

An event where items that have been confiscated, abandoned, or recovered by law enforcement agencies are sold to the highest bidder.

Abandoned Property

Property that has been discarded by the owner without the intent to reclaim ownership of it. Courts require clear and convincing evidence of both the desertion by the owner and the owner’s intent never to return.

Fair Market Value

The price that a property would sell for on the open market, considering all conditions of the sale without any undue pressures on buyer or seller.

Blueberries

Small, round berries with a flared crown at one end, known for their deep blue color and sweet to tart flavor, popular in various culinary uses.