Requirement Complete the following table by indicating: 1. The section of the income statement where the item should be included (e.g., operating, non-operating, discontinued operations), a 2. Whether the event is reported net of tax. The first event is completed as a guide. Income Statement Reported Net Event Classification of Tax? Loss on disposal of equipment Non-oporating No Gain on sale of plant assets Impairment loss Loss on inventory write-off after government prohibition Operating income Unrealized loss on available-for-sale investments Gain on disposal of expropriated land Unrealized gain on trading securities Operating income of discontinued division Loss on inventory write-off due to obsolescence
Requirement Complete the following table by indicating: 1. The section of the income statement where the item should be included (e.g., operating, non-operating, discontinued operations), a 2. Whether the event is reported net of tax. The first event is completed as a guide. Income Statement Reported Net Event Classification of Tax? Loss on disposal of equipment Non-oporating No Gain on sale of plant assets Impairment loss Loss on inventory write-off after government prohibition Operating income Unrealized loss on available-for-sale investments Gain on disposal of expropriated land Unrealized gain on trading securities Operating income of discontinued division Loss on inventory write-off due to obsolescence
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1
Transcribed Image Text:Requirement
Complete the following table by indicating:
1. The section of the income statement where the item should be included (e.g., operating, non-operating, discontinued operations), and
2. Whether the event is reported net of tax.
The first event is completed as a guide.
Income Statement
Reported Net
Event
Classification
of Tax?
Loss on disposal of equipment
Non-operating
No
Gain on sale of plant assets
Impairment loss
Loss on inventory write-off after government prohibition
Operating income
Unrealized loss on available-for-sale investments
Gain on disposal of expropriated land
Unrealized gain on trading securities
Operating income of discontinued division
Loss on inventory write-off due to obsolescence
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