1. Reported earnings numbers often contain three distinctly different components possibly subject to different earnings capitalization rates. Which of the following is not one of these components?

Multiple Choice

• A restructured earnings component.

• A permanent earnings component.

• A value-irrelevant earnings component.

• A transitory earnings component

2. Because income from discontinued operations is not likely to be recurring, it would be considered transitory earnings and be valued at a lower multiple than recurring components (such as income from operations)

true/false