Simon Steel Inc. had the following unusual financial events occur this year: Bonds payable were retired 5 years before their scheduled maturity, resulting in a
$260,000 gain, Simon has frequently retired bonds early when interest rates declined significantly. A steel forming segment suffered $255,000 in losses from hurricane damage. This was the fourth similar loss sustained in a 5-year period at that location. A segment of Simon's operations, steel transportation, was sold at a net loss of $350,000. This was Simon's first divestiture of one of its operating segments. Before income taxes, what amount should be disclosed as the gain
(loss) from extraordinary times for this year?
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A. B. C. D. E.A
Accounting rules require that any gain or loss from early retirement of debt must be recognized as an extraordinary item. For all other transactions to be classified as extraordinary items, they must be both unusual and infrequent. In this case, none of the other gains or losses qualify.