Answer
This transaction can be recorded in the income statement as an extraordinary item depending on whether it is an infrequent gain, or a material or an unusual gain, realized during the accounting period.
Work Step by Step
However, in line with the Accounting Principles Board (APB), under normal circumstances, this transaction would be recorded on the non-operating income section (in a multi-step income statement) rather than as an extraordinary transaction. With this being said, if it is infrequent or unusual, it qualifies for separate disclosure within the income statement.
