Match tge items with the advantages and disadvantages of the income statement

5. Identify each of the earningn items as primarily permanent transitory in nature, or 4. Match the item Vith the advantages and disadvantages of the income statements. Options a The sale of a specialized piece of equipment is c. e. f. 11. {3. 6, unlikel to reoccur in the followin The income statements provide confirmatoty value. Managers make estimates and assumptions. Investors expect past growth to continue. Managers manage earnings to meet analysts' forecasts. Pending lawsuits not be reported. Managers can choose from several inventory cost flow assumptions. Item Evaluates past performance. dicts future performance. sesses risks or uncertainties of achievin ture cash flows. cludes certain items. epends on accounting methods selected. be manipulated and managed. equires extensive judgment. : Item Belling expenses 'Sales salaries expense *Unrealized loss on available-for-sale bonds !lnterest income 'Depreciation expense ortization expense Interest expense Permanent or Transitory? Permanent Permanent Permane Advantage / Disadvantage Loss on asset impairment Logg on sale of discontinued before tax EGain due 'to flood damage Gain on disposal of plant assets Office supplies expense {Advertising expense :nmce salaries expense EEGain on trading investments *Cost of goods sold operations Permanent Transitory Permanent Permanent