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1. What is the income before extraordinary items
2. Extraordinary items
3. Net Income
Solution
1)Income that is earned from normal operations(day to day operations )without giving effect to
extraordinary items(irregular occurence ) or discontinued segment are called Income before
extraordinary items.
2)Extraordinary items : Gain or losses included in company's Financial statement which are
irregular ,infrequent or unusal in nature.
loss on sale of property ,
Foreign exchange gain or loss
Disposal of component of an entity etc.
3)Net income is a total of Income from ordinary operations and extraordinary gain or losses .

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