can you explain, why is "not net of income taxes" what is net of income tax means. thank you

0 Em O See Lecture MCQ-00031 Mark Question Scott Corporation sold a fixed asset used for operations for greater than its carrying amount. Scott should report the transaction in the income statement using the: A. Gross concept, showing the proceeds as part of revenues and the carrying amount as part of expenses in the continuing operations section. B. Net concept, showing the total amount as a component of other comprehensive income, net of income taxes. C. Net concept, showing the total gain as part of discontinued operations, net of income taxes. Net concept, showing the total gain as part of continuing operations, not net of income taxes. D. Explanation Choice "D" is correct. The transaction resulted in a gain, which should be reported using the net concept (i.e.. proceeds less carrying amount). This gain resulted in the recognition of an asset not in the ordinary course of business, but it did not qualify as part of discontinued operations. Choice "A" is incorrect. Gains (and losses) are reported using the net concept. Choice "B" is incorrect. Gains and losses from fixed asset sales are reported using the net concept, but are not included in other comprehensive income. Choice "C" is incorrect. Gains and losses from fixed asset sales are reported using the net concept, but are not included in discontinued operations because a fixed asset is not considered a component of an entity. Discontinued operations are only reported for the disposal of a component of an entity. 4400