To be classified as an extraordinary item on the income statement under U.S. GAAP, the item must be: A. probable and infrequent in nature. B. estimated and probable. C. unusual in nature and infrequent in occurrence.
Extraordinary items are unusual and infrequent events that are reported separately, net of tax "below the line." Examples are expropriations by foreign governments and uninsured losses from earthquakes, eruptions, and tornadoes.
