During 2010, Peg Construction Co. recognized substantial gains from

• An increase in value of a foreign customer’s remittance caused by a major foreign currency revaluation.

• A court-ordered increase in a completed long-term construction contract’s price due to design changes.

Should these gains be included in continuing operations or reported as an extraordinary item in Peg’s 2010 income statement?

Gain from major currency revaluation Gain from increase in contract’s price

a. Continuing operations Continuing operations

b. Extraordinary item Continuing operations

c. Extraordinary item Extraordinary item

d. Continuing operations Extraordinary item