Q5. Thomas understands that while making an income statement for a company, the income or loss from dis-continued operations and extraordinary items should be shown separately since these items are generally material in dollar amount and company pays a large amount of tax on these. Do you agree with this? Explain.

Q6. Sara is new to accounting subject. She understands treasury stocks but believes that a re-sell of treasury stock can possibly result in a company reporting loss in its income statement. Do you agree with Sara? Why?