Under U.S. GAAP, the effect of a material transaction that is infrequent in occurrence but not unusual in nature should be presented separately as a component of income from continuing operations when the transaction results in a:
Choice "C" is correct, Yes - Yes. Under U.S. GAAP, a material transaction that is "infrequent in occurrence" but not "unusual in nature" should be presented separately as a component of "income from continuing operations" when the transaction results in a gain or loss, while transactions that are unusual and infrequent are reported as extraordinary items.
