One of our divisions, Vitamin Soda has shown a decrease in sales over the past two years. While the division is still profitable, we are concerned that the demand for the product will decrease due to competition from healthier alternatives. We are considering discontinuing operations for this division, but we would like to know how this would impact our income statement The discontinued operation will be reported in the income statement under income from continued operations and there will be a note to the financial statements referencing the discontinued operation. The discontinued operation will be reported in the income statement under income from continued operations and the discontinued operation will be referenced in the MD&A section of the financial statements The discontinued operation will be reported separately on the income statement for the period in which it occurs. O We only have to report residual income and expense items the year after an operation is discontinued