In its year-end earnings announcement press release, Ransome Corp. announced that its earnings increased by SI 5

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In its year-end earnings announcement press release, Ransome Corp. announced that its earnings increased by SI 5 million relative to the previous year. This represented a 20% increase. Inspection of its income statement reveals that the company reported a $20 million gain under "Other revenues and gains" from the sale of one of its factories. Discuss the implications of this gain from the perspective of a potential investor.
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Accounting Tools for Business Decision Making

ISBN: 978-1118096895

6th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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