QUESTION 1

On a multiple-step income statement, gains or losses on the sale of equipment would be shown
A)	before gross profit on sales.
B)	after income from continuing operations but before income from extraordinary items.
C)	after income before extraordinary items but before net income.
D)	after gross profit on sales but before income from continuing operations.

QUESTION--2)

The normal ordering of items in the income statement would be best illustrated by which of the following?
A)	Income from continuing operations, extraordinary items, cumulative effects, discontinued operations, net income
B)	Extraordinary items, cumulative effects, income from continuing operations, discontinued operations, net income
C)	Discontinued operations, income from continuing operations, extraordinary items, cumulative effects, net income
D)	Income from continuing operations, discontinued operations, extraordinary items, cumulative effects, net income