Indicate the section of a multiple-step income statement in which each of the following is shown.

(a) Loss on inventory write-down.

(b) Loss from strike.

(c) Bad debt expense.

(d) Loss on disposal of a discontinued operation.

(e) Gain on sale of machinery.

(f) Interest revenue.

(g) Depreciation expense.

(h) Material write-offs of notes receivable.

Serial No.

Section

Explanation

(a)

Extraordinary section

Loss on inventory write-down is non-recurring; hence should be shown as an extraordinary loss.

(b)

Extraordinary section

A strike is a non-operational activity; hence respective loss should be reported under the extraordinary section.

(c)

Operation section

Bad debts are part of operating activities; hence related expenses should be reported as operating expenses.

(d)

Discontinued operations section

Loss belongs to discontinued operations should be shown separately in the discontinued operation section.

(e)

Extraordinary section

Gain on sale of an assetis non-operating activity; hence the same should be reported as an extraordinary gain.

(f)

Operating section

Interest revenues are part of business operations; therefore should be reported in the operating section.

(g)

Operating section

Depreciation belongs to business operations; hence should be reported as an operating expense.

(h)

Operating section

Writing off materials linked with notes receivable are associated with business operations; hence should be reported under the operating section.