Answer:
False
Explanation:
When a company divests from a product line or shuts down one of it's operations which earlier formed part of it's core business, such a process is referred to as discontinuation of operations.
Loss arising out of disposal of discontinued operations yields tax benefits in the form of tax savings since such a loss is tax deductible.
The loss on the disposal of discontinued operations is reported in a separate section of the income statement.
Such losses are deducted from the income of continuing operations to arrive at the net income of an entity.
