The distinction between operating and non operating income relatives to: A. Continuity of income. B. Principal activities of the reporting entity. C. Consistency of income stream. D. Reliability of measurements. The Silawal Company manufactures children's toys and also has a division that makes automobile parts. Due to a change in its strategic focus, the company sold the automobile parts division. The division qualifies as a component of the entity according to GAAP regarding disposal of long-lived assets. How should Silawal report the sale in its 2013 income statement? A. Report it as an extraordinary item. B. Report it as a discontinued operation, reported below income from continuing operations. C. Report the income or loss from operations of the division in discontinued operations below continuing operations and the gain or loss from disposal in continuing operations. D. None of the above