Question

Where is a gain or loss from discontinued operations reported in the financial statements?
a. In the report on internal control
b. Immediately following income from continuing operations on the income statement
c. Immediately following retained earnings on the balance sheet
d. Immediately following income tax expense on the income statement

Answer 1

Answer:

b. Immediately following income from continuing operations on the income statement

Explanation:

Gains are losses from discontinued operations must be reported in the company's income statement. Discontinued operations are not reported in the balance sheet.

The net of tax gain or loss from discontinued operations should be reported immediately after the operating income (loss).