For each of the items listed below, identify the proper placement in the income statement or retained earnings statement under U.S. GAAP. (Income from continuing operations; Discontinued operations; Extraordinary items; Accounting principle changes)

1. Change to the FIFO method from LIFO method: effect as of the beginning of the year.

2. Settlement of material litigation.

3. Prohibition of product line by the government.

4. Material gain on the sale of a factory building.

5. Change from double- declining balance to straight- line method of depreciation on the first quater: current years' effect. 6. Operations of segment deemed :held for sale"

7. Loss from a major strike by employees.

8. Revenue from a cancelled product line in woment's clothing.

9. Material flood damage to a building located in the flood plain that flood every two years.

10. Change in the estimated servise life of an asset.

11. Extinguishment of a long term debt (common management strategy for borrowing purposes).

12. Destruction of a warehouse by an earthquake in Wisconsin (a state that rarely has earthquakes)

13. Material write- dowm of inventory.

14. Loss on the sale of subsidiary.