Suppose you are a financial consultant and the following item has been brought to your attention: Thomas Company suffered a $111,800 loss due to the overflowing of local riverbanks. One of its company buildings was damaged. Floods on average occur every three or four years. Required: a. From the pull-down menu, select the appropriate income statement.classifications of the item. b. Determine the amount related to the item that would appear in the income statement. c. Determine whether the item will increase or decrease the net income. Notes: 1. Assume a tax rate of 33%. 2. All items are material. Choose One Classification What is the amount related to the item? $0 Would net income increase or decrease? Increase Decrease X 5 ?