Which of the following is a required disclosure in the income statement when reporting the disposal of a component of the business?

a. The gain or loss on disposal should be reported as an extraordinary item.
b. Results of operations of a discontinued component should be disclosed immediately below extraordinary items.
c. Earnings per share from both continuing operations and net income should be disclosed on the face of the income statement.
d. The gain or loss on disposal should not be segregated, but should be reported together with the results of continuing operations.

Answer: c. Earnings per share from both continuing operations and net income should be disclosed on the face of the income statement.

Business

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