Question 2 Several income measurements are required to be disclosed. Understanding how items affect each of these measurements is fundamental to accurate income reporting. Investors place different levels of importance on income items depending on where the item is reported within the income statement or associated disclosures. Several items appear below. For each item, choose the correct income measure from the list below. Assume a firm that is not engaged in manufacturing. Choose only one response for each item. Items may be used once, more than once, or not at all. Income Measure a. Income from continuous operations (IFCO) b. Income other than IFCO c. Other comprehensive income d. Owner's equity other than the above three measures e. None of the above Item 2 3 4 5 Income Measure Gain on disposal of plant asset Unearned revenue Cumulative effect of change from LIFO to FIFO Unrealized loss on investment in trading debt securities Realized gain on investment in debt securities Unrealized loss on investment in debt securities available-for-sale Cumulative effect of change from FIFO to LIFO Effect of change in estimate of useful life for a plant asset Estimated disposal loss on discontinued tions and cash flows 6 7 8 Focus Cumulative effect of change from FIFO to 7 LIFO Effect of change in estimate of useful life for a 8 plant asset Estimated disposal loss on discontinued component for which operations and cash flows 9 can be distinguished from the rest of the entity for operational and financial reporting purposes 10 Deferred tax liability Increase in unrealized pension cost 12 Income tax expense 13 Restructuring charge 14 Loss from effect of a new regulation or law 15 Stock dividend distributed 16 Accumulated other comprehensive income Dividends received on investment in debt 17 securities