Which of the following statements about nonrecurring and other special items is correct?

Some special items, such as changes in the value of certain balance sheet accounts, are excluded from the calculation of net income.

Nonrecurring items such as discontinued operations are presented above the income tax expense line on the income statement.

Discontinued operations are reported net of tax as part of the income from continuing operations.

The cumulative effect of change in accounting principles is reported on the income statement as part of income from continuing operations.