Chapter 4, Problem 1CPA

To determine

Generally Accepted Accounting Principle (GAAP):

Generally Accepted Accounting Principle (GAAP) is a common set of accounting principles, standards, and procedures that the companies must follow at the time of preparation of the financial statements.

Discontinuing operations:

Discontinuing operations are those when a segment in a company’s business has been sold, disposed of and subsequently reported on the company’s income statement, separately.

To identify: The way of reporting of the sale in Company’s R 2016 income statement.