Question

Popson Inc. incurred a material loss that was unusual in character. This loss should be reported as:

Answer 1

Popson Inc. incurred a material loss that was unusual in character. This loss should be reported as: a line item within income from continuing operations.

Explanation:

Any income or loss that was incurred during the continuous operations of any segment of business or in the continuous operations of any segment of business will be either represented as after tax gain or loss on selling the business segment and the after tax effect of the operations of the discontinued business segment.

The areas such as expenses, revenues, loss and gain and those excluding the   operation discontinued and extra ordinary items will included as the income from continuing operations.In the example given, the company has material loss during its operations and hen it should be reported as a line item within income from continuing operations.