E13-2. The Wall Street Journal routinely publishes summaries of corporate quarterly and annual earnings reports in a feature called the "Earnings Digest." A typical "digest" report takes the following form.

Energy Enterprises (A)

{2014} [2013] Sales revenue {$2,049,000,000} [$1,754,000,000] Net income {97,000,000} [(a)68,750,000] EPS: Net income {1.28} [.93]

12 months ending July 31 {2014} [2013] Sales revenue {$5,578,500,000} [$5,065,300,000] Extraordinary item {(b) 1,900,000} Net income {102,700,000} [(a) 33,250,000] EPS: Net income {1.36} [.48]

(a) Includes a net charge of $26,000,000 from loss on the sale of electrical equipment. (b) Extraordinary gains on Middle East property exportations.

The letter in parentheses following the company name indicates the exchange on which Energy Enterprise' stock is traded--in this case, the American Stock Exchange.

Answer the following: (a) How was the loss on the electrical equipment reported on the income statement? Was it reported in the fourth quarter of 2013? How can you tell?

(b) Why did the Wall Street Journal list the extraordinary item separately?

(c) What is the extraordinary item? Was it included in income for the fourth quarter? How can you tell?