Final answer:
Long-term debt extinguishments are not always reported in extraordinary items; this practice has been eliminated from GAAP, making the statement false.
Step-by-step explanation:
The statement that long-term debt extinguishments are always reported in extraordinary items, net of tax is false. To provide more clarity, extraordinary items are unusual and infrequent events that must be both significant and distinct from a company's ordinary business activities. With the changes in accounting standards, particularly with the Financial Accounting Standards Board (FASB) update in 2015, the extraordinary item classification has been eliminated from generally accepted accounting principles (GAAP). Therefore, companies no longer separate these events in their income statements but include them within operating income or other sections, as per the nature of the transaction.