C is corrent because an extraordinary gain (net of tax) is included after discontinued operations on the income statement to arrive at net income. Extraordinary gains will increase net income. A is incorrect. Extraordinary gain (net of tax) is included after discontinued operations on the income statement to arrive at net income. Extraordinary gains will increase net income. B is incorrect. Extraordinary gain (net of tax) is included after discontinued operations on the income statement to arrive at net income. Extraordinary gains will increase net income. D is incorrect. Extraordinary gain (net of tax) is included after discontinued operations on the income statement to arrive at net income. Extraordinary gains will increase net income.
