Suppose you are a financial consultant and the following item has been brought to your attention: Turner Company received a new geological report informing it that the amount of coal in its coal mine is 30% greater than in previous estimates. As a result, the cost per ton of coal has decreased. Also, the cost of goods sold reported for the year had decreased by $175,000. 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 42% 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