2. How should gains and losses be reported in the financial statements? a. Shown as a separate item after income from operations before income taxes, if material, and supplemented by a footnote if deemed appropriate b. Shown in operating revenues or expenses if material with disclosure. c. Shown net of income tax after ordinary net earnings, but before discontinued operations. d. Shown net of income tax after discontinued operations but before net earnings. 3. Companies are required to highlight certain items in the financial statements so that users can better determine the long-run earning power of the company. Which of the following is not one of those items? a. Unusual gains and losses b. Noncontrolling interest c. Changes in accounting principle d. Discontinued operations 4. Barger Enterprises has an unusual loss of $300,000, an infrequent gain of $700.000, and a tax rate of 30%. At what amount should Barger report each item? Unusual Loss Unusual Gain 1. $(300,000) $700,000 2. (300,000) 490,000 3. (210,000) 700,000 4. (210,000) 490,000 a. 1 b. 2 c. 3 d. 4