Regarding Discontinued Operations,which of the Following Statements Is Correct

question 161

Multiple Choice

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

• A) Gains and losses on the sale of plant assets are reported as discontinued operations.
• B) A loss on discontinued operations is reported with an addition for the applicable income tax.
• C) A loss on discontinued operations is included with an addition for the income tax savings on the loss.
• D) The disposal of the financing segment of a large corporation would be reported as a discontinued operation.

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Definitions:

Collectivism

A cultural value that emphasizes the importance of the group over individual achievements and the interdependence of its members.

Independence

The state or quality of being autonomous and not dependent upon external support or control.

Interdependence

The mutual reliance between two or more entities where each influences or depends on the other.

Cross-Cultural Research

An empirical investigation of human behavior that compares cultural groups to identify similarities or differences.