Final answer:
Discontinued operations in a partial income statement are reported separately to show the financial performance of the continuing operations of a company. If taxes are not included in the original income statement, the income or loss from discontinued operations will also be reported before taxes.
Step-by-step explanation:
Discontinued operations refer to a segment of a company's business that has been either sold or shut down. They are reported separately on the income statement to provide clarity on the financial performance of the continuing operations of the company.
If the original income statement does not include taxes, then the income or loss from the discontinued operations will also be reported before taxes. This helps to isolate and measure the impact of the discontinued operations on the pre-tax profitability of the company.