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22Q

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Intermediate Accounting (Kieso)
Found in: Page 180

Short Answer

Discuss the appropriate treatment in the income statement for the following items:

(a) Loss on discontinued operations.

(b) Non-controlling interest allocation.

(c) Earnings per share.

(d) Gain on sale of equipment.

a) Reported between income from continuing operations and net income

b) Reported after the net income

c) Reported after the non-controlling interest allocation

d) Reported in other revenues and gains section

See the step by step solution

Step by Step Solution

Meaning of Income Statement

An Income statement includes four main items: revenue, gains, expenses, and losses. It is considered one of the three main financial statements.

Explanation of Loss on discontinued operations

A loss on discontinued operations is reported in the income statement as net of tax between income from continuing operations and net income.

Explanation of Non-controlling interest allocation

Non-Controlling interest allocation is reported in the income statement after the net income.

Explanation of Earnings per share

Earnings per share are reported in the income statement after the non-controlling interest allocation.

Explanation of Gain on sale of equipment

A gain on the sale of equipment is reported in the other revenues and gains in the income statement.

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