A company that discontinues and disposes of an operation (component) should include the gain or loss on sale in the income statement as a(n)

A) prior-period adjustment
B) extraordinary item
C) amount after income from continuing operations and before extraordinary items
D) bulk sale of fixed assets included in income from continuing operations

Operation Discontinuation

The process of ceasing operations in certain business segments or units, often resulting in their sale or closure.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period, revealing financial performance.

Extraordinary Item

A significant transaction or event that is both unusual and infrequent, no longer recognized in GAAP financial statements but was distinguished as having a major impact on a company's financial health.