Part A, B, C

a. discuss whether you would adjust for each of the following items when using earnings to forecast the future profitability of henry:

1. gain on sale of portion of the branded product line

2. extraordinary loss

b. indicate the adjustment you would make to henry's net income for each item in part a

c. discuss whether you believe the reclassification adjustments made by henry for the sale ad promotion incentive costs (item 3) are appropriate.