In an effort to concentrate its resources in more profitable areas, Southern Steel Corporation recently sold its family pizza restaurant segment. The disposal constitutes: A. an extraodinary item. B. a discontinued operation which should be treated as a prior period adjustment. C. a discontinued operation which should be disclosed net-of-tax effects. D. a portion of income from continuing operations. E. None of these.

Which of the following events are considered as extraordinary by the accounting profession? A. Write-down or write-off of receivables, inventories, and intangible assets. B. Gains and losses on the disposal of a business segment. C. Gains and losses from the sale or abandonment of property, plant, and equipment. D. Effects of a strike, including those against competitors and major suppliers. E. None of these.