The income statement usually classifies the results of various transactions and events in one of the following 3 sections:

1. Income from continuing operations
2. Income, gains and losses from discontinuing operations.
3. Extraordinary Items

Identify each of the transaction or events that follow, and state any assumptions you may feel necessary.

1. Salary of the corporation president.
2. Gain from sale of the warehouse, no longer needed in operations.
3. Loss from the sale of a farm business.
4. Income from the current year of the farm business before its sale.
5. Loss in excess of insurance proceeds on an automobile destroyed during an accident.
6. Loss of funds in a bank account in a foreign country as a result of the government confiscation.
7. Interests and dividends received from investments in marketable securities.
8. Uninsured loss of a house in Spain due to a volcanic eruption.
9. Lawyers expense in preparation of a staff restructuring to as a consequence of orders reducing in 50%, that will take place on the next year related to a steel manufacturing business.
10. Extraordinary depreciation in the machinery for the steel manufacturing business, after the realization of an impairment test.