is disposal of a portion of a business segment (A) unusual or infrequent (B) unusual and infrequent © should be treated separately A: (A) only B: (A) and © only C: © only
Discontinued operations, or A
I would say C, but I know the books(Schweser) says its b
it’s A only, but I think C is also right, I chose B but the answer is A
it’s weird though how disposition of a business segment (if treated as an unusual or infrequent) is reported in income from continuing operations before tax. Yet discontinued operations are reported after income from continuing operations net of tax. I guess the key is a business segment is part of the company when discontinued operations have to be physcially distinct (asset, operating, financing and investing activities)
if you are disposing of a business segment (ie. this disposal was generating income before disposal), its discontinued operations. but since discontinued operations is not a choice in the answer, it has to be A. cuz it can’t be both, or else it’d be marked extraordinary. C is valid choice, but the problem with C is that both, a and b are treated separtely.