Problem 3 (10 Points) For each of the items listed below, indicate earnings statement these items should be classified. Provide a brief Use the following letter code for your selections in what section of the income statement or retained atinale for your answer. A. Reported as an Ordinary or unusual gain (loss) item on the income statement as part of Income from Continunigng operations B. The item is classified as a Change in Accounting Estimate and is reported as part of continuing operations on the income statement The item is classified as Discontinued operations and is reported on the income statement net of related taxes. C. D. The items is classified as a Change in Accounting Principle and is reported on the E. The item is classified as a Correction of an Error and as a Prior period adjustment on the retained earnings statement retained earnings statement 1. Loss on the disposal of a separate line of the business 2. The company neglected to record its correct ending inventory in the previous year 3. An uninsured casualty loss was incurred by the company. 4. The usefull life of a depreciable asset was changed, thus decreasing depreciation expense. 5. Discontinuance of all production in New Jersey. The manufacturing operations were relocated to New Mexico. 6. The company changes from FIFO method to Average Cost method for inventory costing purposes