Multiple Choice Question

A component is qualified as a discontinued operation. What are the two elements that may be reported in discontinued operations on the income statement if the

component is not sold by the end of the reporting period?

Operating income or loss from the component and an impairment loss both reported without consideration of the tax effects.

Operating income or loss from the component and an impairment loss both reported on a net of tax basis.

Revenues and gains of the component for the period.

Estimated gain on sale of the component and the related tax effects.