[startupcfo]

ewt Co. sold a warehouse and used the proceeds to acquire a new warehouse. The excess of the proceeds over the carrying amount of the warehouse sold should be reported as:

Incorrect A.
a reduction of the cost of the new warehouse.

B.
a gain from discontinued operations, net of income taxes.

C.
a part of continuing operations.

D.
an extraordinary gain, net of taxes.

I selected A because it appeared to be a likekind exchange where the basis would transfer over to the likekind property. Why is it C?

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