Chapter 4 - Income Statement and Related Information - Review and Practice - Questions - Page 181: 37

The discontinued operations-related gains and losses come after the net income. If gains were realized due to the disposal, they are recorded, and the due income tax is deducted from them. The net gains are then added to the income raised from the continuing operations to arrive at the net income. If the disposal resulted in a loss, the loss is recorded, and the income tax due is deducted from the loss. The figure after the tax deduction is deducted from the net income derived from continuing operations to get the net income.

The discontinued operations-related gains and losses come after the net income. If gains were realized due to the disposal, they are recorded, and the due income tax is deducted from them. The net gains are then added to the income raised from the continuing operations to arrive at the net income. If the disposal resulted in a loss, the loss is recorded, and the income tax due is deducted from the loss. The figure after the tax deduction is deducted from the net income derived from continuing operations to get the net income.