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 income measure by clicking on the associated cell in the income measure column and selecting from the list provided. 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.

1 Gain on disposal of plant asset

2 Unearned revenue

3 Cumulative effect of change from LIFO to FIFO

4 Unrealized loss on investment in trading debt securities

5 Realized gain on investment in debt securities

6 Unrealized loss on investment in debt securities available-for-sale

7 Cumulative effect of change from FIFO to LIFO

8 Effect of change in estimate of useful life for a plant asset

9 Estimated disposal loss on discontinued component for which operations and cash flows can be distinguished from the rest of the entity for operational and financial reporting purposes

10 Deferred tax liability

11 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

17 Dividends received on investment in debt securities

18 Dividends received on equity method investment

• The choices for each are these:
• 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

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 income measure by clicking on the associated cell in the income measure column and selecting from the list provided. Assume a rm that is not engaged in manufacturing. Choose only one response for each item. Items may be used once. morethan once. or not at all. Gain on disposal of plant asset Unearned revenue Cumulative effect of change from LIFD to FIFD 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 component for which operations and cash flows can be distinguished from the rest of the entity:r for operational and financial reporting purposes