In 2011, Simplon Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows:
A. Income (loss) from continuing operations
B. Income (loss) from operating, or gain (loss) from disposing, a discontinued segment
C. Extraordinary gain (loss)
Indicate where each of the following income-related items for this company appears on its 2011 income statement by writing the letter of the appropriate section in the blank beside each item.

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Section Item Debit Credit $3,000,000 I. Net sales . 2. Gain on state's condemnation of company property (net of tax) 3. Cost of goods sold . 4. Income taxes expense.. .17,000 5. Depreciation expense 6. Gain on sale of wholesale business 330,000 $1,580,000 332,500 segment (net of tax).... 875,000 7. Loss from operating wholesale business 544,000 740,000 segment (net of tax) B. Salaries expense-...+....