Reference no: EM132940623

Question 1: When a business segment is discontinued during the year, the gain or loss on disposal

Group of answer choices

Option 1: should include only the loss or income from operating the discontinued segment for the current period.

Option 2: should include only the loss or income from operating the discontinued segment for the current period.

Option 3: should be shown net of applicable income taxes.

Option 4: is reported as an extraordinary item.

Question 2: Harris Company reported the following results from operations for 2014:

Extraordinary loss (pretax) ........................... $22,000

Net income (after tax) ................................ $75,200

Income tax rate ....................................... 40%

Income before extraordinary items was

Group of answer choices

Option 1: $87,200

Option 2: $83,280

Option 3: $97,200

Option 4: $88,400