5/22/2023 0 Comments Extraordinary items accounting![]() But I want to make a note that it's beyond the scope of this class. So it's gonna have to do some special presentations of these discontinued operations. Let's discontinue service contracts and just sell computers. But let's say it says you know what? The service contracts aren't making us that much money. So they're selling both, they sell a computer and then they'll say, hey we'll repair the computer if you pay for this contract. So imagine there's a computer company that sells computers and service repair contracts. It's not closing down its business altogether, it's just a portion of the business. This is when the company is planning to exit a major component of its business. So the first one here, discontinued operations. ![]() So let's quickly discuss two non recurring items that appear on our income statement, discontinued operations and extraordinary items.
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