Division qualifies as a component of the entity according

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Reference no: EM13870792

The Claxton Company manufactures children's toys and also has a division that makes automobile parts. Due to a change in its strategic focus, the company sold the automobile parts division. The division qualifies as a component of the entity according to GAAP. How should Claxton report the sale in its 2016 income statement?

a) Report it as a discontinued operation.

b) Report the income or loss from operations of the division in discontinued operations.

c) Report it as a gain on sale of investments included in income from continuing operations.

d) Report it as restructuring costs.

Reference no: EM13870792

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