Required Information [The following information applies to the questions displayed below.] In the current year, Randa Merchandising Incorporated sold its Interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. 1. Net sales Item 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Debit Credit $ 3,400,000 270,000 $ 1,735,000 254,000 272,000 909,000 521,000 750,000 Indicate where each of the following Income-related items for this company appears on its current year income statement by selecting the appropriate section in the drop down beside each item. 1. 2. 3. 4. 5. 6. 7. 8. Section Item Debit Credit Net sales Gain on state's condemnation of company property Cost of goods sold $ 3,400,000 270,000 S Income tax expense 1,735,000 254,000 Depreciation expense 272,000 Gain on sale of wholesale business segment, net of tax 909,000 Loss from operating wholesale business segment, net of tax 521,000 Loss of assets from meteor strike 750,000