A component of Ace, Inc. was discontinued during year 2. Ace's loss on disposal should

a. Exclude associated lease cancellation costs.

b. Include associated employee termination costs.

c. Exclude the associated employee relocation costs.

Which of the following would represent the most likely use of an income statement prepared for a business enterprise?

a.Use by investors interested in the financial position of the entity.

b.Use by government agencies to formulate tax and economic policy.

c.Use by customers to determine a company's ability to provide needed goods and services.

d. Use by labor unions to examine earnings closely as a basis for salary discussions.

d. Exclude operating losses for the period.