E4-1

reported in the 2017 financial statements? Discuss alternative 31. Linus Paper Company decided to close two small pulp 35. What is meant by the terms elements and items as they mills in Conway, New Hampshire, and Corvallis, Oregon. These two closings do not represent a major shift in strategy for the company. Would these closings be reported in a separate section entitled "Discontinued operations after income from continuing operations"? Discuss. relate to the income statement? Why might items have to be disclosed in the income statement? in a separate section entitled Discontin36. What are the two ways that other may be displayed (reported)? How should the disposal of a component of a business be disclosed in the income statement? 37. BRIEF EXERCISES BE4-1 (LO3) Starr Co. had sales revenue of $540,000 in 2017. Other items recorded during the year were: Cost of goods sold Salaries and wages expense Income tax expense Increase in value of company reputation Other operating expentses Unrealized gain on value of patents 5330,000 120,000 25,000 15,000 10,000 20,000 Prepare a single-step income statement for Starr for 2017. Starr has 100,000 shares of stock outstanding 4-2 (L03 Brisky Corporation had net sales of $2 400,000 and interest revenue of $31,000 during 2017, Expenses for 20 ost of goods sold $1 450,000, administrative expenses $212,000, selling expenses $280,000, and interest expense $45,00