1. Where would the following items be shown in an income statement? Explain your choice.
   1. The firm incurred employee termination costs because they had to lay off 10% of their work force due to a drop in sales.
2. 2. The salary and employee benefits of the firm's CEO.
3. 3. The firm made money on a short-term investment in Federal Treasury securities in which it had invested to "park" some excess cash until they could use it to expand the business.
4. 4. The cost of a major new advertising campaign launched during the year.
5. 5. Research and development expenses
6. 6. Depreciation on production equipment
7. 7. Loss on the sale of production equipment
8. 8. After tax net loss from a product line that represented 12% of their total sales that they sold during the year.