1. The BMR Company reported a gain from discontinued operations of $70,000, net of tax. This item should be separately presented on the income statement in the:

a) Multiple-step format

b) Single-step format

c) None of the above

d) Single-step AND multiple-step format

2. Which statement in this question is correct?

a) The 'function' format is permitted only for retail organizations

b) The 'nature' format shows each major expense category in descending order

c) None of the above

d) Both statements are correct