Extraordinary gain directly increases income from discontinued operation, net of tax because it comes directly after discountinued operations on the income statement.
wait. I'm confused. the question was that the accounts were being written off, but there was no mention of recovery? recovery of a write off would have 0 effect.
I just brought up the recovery for my own benefit (and hopefully others) to make sure I understand and can explain it. Sorry–That wasn't part of the question at all.
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