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Write your response and explain your reasoning.
A component qualifies as a discontinued operation. The current period includes an operating loss and a disposal gain for that component. The comparative period includes the component's operating result, and the current balance sheet includes the disposal group's assets and liabilities. Prepare a presentation outline for both income-statement periods and the current balance sheet.
Compare your reasoning with the worked answer
Present the current operating result and disposal result below income from continuing operations, with each amount shown net of its related tax effect. Recast the comparative income statement so the prior component also appears below continuing operations. The recast changes placement, not prior net income. Present qualifying disposal-group assets and liabilities separately on the balance sheet when the applicable guidance requires it.