Question

Which of the following is not classified as an unusual and infrequent gain or loss? Impairment losses on intangible assets. Flood damage losses to property. A discontinued operation. Losses from inventory write-downs.

Answer 1

Answer:

A discontinued operation.

Explanation:

Unusual and infrequent gain or loss are those gains of losses that do not occur in the normal business operation process. They are infrequent and not expected to reoccur in the foreseeable future.

A discontinued operation is not classified as unusual and infrequent gain or loss but rather as net of tax category on the income statement.