Question

Explain what a loss from discontinued operations is and 2 specifics on how it should be reported on the income
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Answer 1

Discontinued operations are those business or product of a company which has been either held for sale or which has already been disposed off.

There will be no continuing involvement by the company in the operations, once the disposal transaction has been completed.

Any loss incurred by the company from such discontinued operations are called discontinued loss.

Any income or loss from discontinued operations is reported after income or loss from continuing operations but before net income and profit or loss from extraordinary income.