Classifications Where would each of the following items most likely be reported in a company's financial statements? Assume the monetary amount of each item is material. 1. Bad debts expense 2. Sales discounts taken 3. Depreciation expense on sales equipment 4. Loss from operations of discontinued Division B 5. Earnings per share 6. Gain on sale of land 7. Administrative salaries 8. Cash dividends declared and paid on common stock 9. Gain from sale of discontinued Division B 10. Loss on sale of equipment 11. Advertising expense 12. Merchandise inventory (ending) 13. Loss from write-off of obsolete inventory 14. Cash paid to acquire equipment 15. Unrealized increase in fair value of available-for-sale securities Balance sheet Income statement Statement of retained earnings Both balance sheet and income statement In whichever financial statement the company uses to report its comprehensive income