Intermediate accounting 1 ACC 301 HANDOUT 2: Income statement Exercise 1 : Income statement classifications. Indicate the major section or subsection of an income statement in which each of the following items would usually appear: a. Advertising b. Depletion c. Dividend revenue : d. Freight-in e. Loss on disposal of a component of the business, net of tax : f. Income taxes on income : Interest revenue : Purchase discounts. i. Sales discounts : j. Officers' salaries : k. Freight-out : h. Solution