Does the income statement contain any income or loss on discontinued operations?

Question

Does the income statement contain any income or loss on discontinued operations?

Describe the trend in net income over the years presented. Show data to support your finings.

eBay Inc. CONSOLIDATED STATEMENT OF INCOME Year Ended December 31, 2015 (In millions, except per share amounts) $8,979 $8,592 $ 8,790 2016 2014 Net revenues 2,007 6,972 1,663 7,127 Cost of net revenues 6,821 Gross profit Operating expenses: Sales and marketing Product development General and administrative Provision for transaction losses Amortization of acquired intangible assets 2,368 2,267 2,442 1,114 900 231 34 4,647 923 1,122 271 983 889 262 75 4,651 41 4,624 2,325 2,197 2,476 209 3,651 2,406 2,515 Total operating expenses 4, Income from operations Interest and other, net Income from continuing operations before income taxes Income tax benefit (provision) Income (loss) from continuing operations Income (loss) from discontinued operations, net of income 1,326 39 3,634 (459) (3,380) $7,285 $1,947 $ (865) 911 $7,266 $1,725 46 taxes (19) (222) Net income

Explanation / Answer

Q-1 Yes, Income statement contain income and loss on discontinued business Q-2 The Net Income from continued business is on rise which can be evidenced through loss of $865 in 2014, to profit of $1947 in 2015, to profit of $7285 in 2016. It conveys strong position of profitability in continued business. While the Net Income from discontinued business is on decline till 2015 in which year the company has made loss of $222 compared to profit of $911 last year(2014). The loss has narrowed down to $19 which might be due to entire winding up of discontinued business.

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