Chapter 17, Problem 17E

In the current year, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows.

1. A. Net sales less operating expense section
2. B. Other unusual and/or infrequent gains (losses)
3. C. Taxes reported on income (loss) from continuing operations
4. D. Income (loss) from operating a discontinued segment, or gain (loss) from its disposal

Indicate where each of the following income-related items for this company appears on its current-year income statement by writing the letter of the appropriate section in the blank beside each item.