Game Time Sports owns a recreational facility with basketball courts, pitching machines, and athletic fields. Determine whether the firm should report each of the following items as discontinued operations, extraordinary items, or other expenses.
1. Due to insurance concerns, Game Time sells a trampoline basketball game for a loss of $1,500.
2. Game Time experiences water damage due to a flood from a recent heavy storm. The company replaces the basketball floors at a cost of $75,000. Unfortunately, Game Time does not carry flood insurance.
3. Game Time has revenues from three sources: basketball, baseball, and football. It sells the baseball operations for a loss of $55,000 to focus on the more profitable basketball and football operations.