Exercise 1: Multiple-step Placement Use the codes below to indicate where each item would appear in a multiple-step Income Statement prepared for the period ending December 31, 2012. Also indicate whether the item would likely be considered Permanent or Transitory.

Income Statement

A. Operating revenue

B. Operating expenses

C. Other revenue and gains

D. Other expenses and losses

E. Separately reported items below

Income from continuing operations

X. Would not appear on the income statement

	Account	Placement
1	Accounts receivable
2	Accumulated depreciation
3	Administrative expenses
4	Cost of goods sold
5	Depreciation expense
7	Gain on sale of investments
8	Income tax expense
9	interest expense
10	Interest income
11	Loss for inventory write-down
12	Loss on Sale of Discontinued Operations
13	Loss on sale of land
14	Patent
15	Prepaid insurance
16	Rent revenue
18	Research and development
19	Restructuring costs
20	Sales revenue
21	Selling expense
22	Unearned rent revenue