Toys Unlimited Corp. reported the following for the year ended March 31, 2015:
i. Loss due to earthquake
ii. Extremely large bad debt expense due to loan defaults
iii. Gain on sale of equipment
iv. Loss on closure of retail stores in Fredericton (the company has other retail locations)
v. Loss on closure of all manufacturing operations (retail operations continue)
Determine whether each item above should be classified as
(a) A discontinued operation,
(b) An unusual item, or
(c) An operating item. Explain where and how each item should be reported on the income statement.