In 2011, Jin Merchandising, Inc., sold its interest in a chain of retail outlets, taking the company completely out of the retailing business. The company still operates its wholesale outlets. A listing of the major sections of an income statement follows:

A. Income (loss) from continuing operations

B. Income (loss) from operating, or gain (loss) from disposing, a discontinued segment

C. Extraordinary gain (loss)

Indicate where each of the following income-related items for this company appears on its 2011 income statement by writing the letter of the appropriate section in the blank beside each item.

Section Item Debit Credit

_______ 1. Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,000,000

_______ 2. Gain on state's condemnation

of company property (net of tax) . . . . . . . . . . . . . . 330,000

_______ 3. Salaries expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 640,000

_______ 4. Income taxes expense . . . . . . . . . . . . . . . . . . . . . . . 117,000

_______ 5. Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . 432,500

_______ 6. Gain on sale of retail business segment (net of tax) . . . . . . . . . . . . . 875,000

_______ 7. Loss from operating retail

business segment (net of tax) . . . . . . . . . . . . . . . 544,000

_______ 8. Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . 1,580,000