Answer
The Vice President is theoretically correct. However, the sale of Casino Knights Division would qualify as a discontinued operation, and therefore, the accounting requirements for discontinued operations should be followed.
Work Step by Step
The controller is incorrect because he said the item should be disclosed as an extraordinary item, but it is a disposal of a business component. A separate classification is required for disposals that fail to meet the requirements of the disposal of a business component; here, extraordinary treatment might be considered.
