Answer (D) is correct . Additional revenue from a successful new product and lower costs attributable to improved operating efficiency are examples of high persistence items. Items of low persistence include extraordinary items or one-time or rare transactions such as gains and losses on disposals of capital assets. Zero-persistence items also exist, for example, the immediate expensing of intangibles.
Answer (A) is incorrect because This is an item with low earnings persistence.
Answer (B) is incorrect because This is an item with low earnings persistence.
Answer (C) is incorrect because This is an item with low earnings persistence.
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