Smallville Community Hospital, a not-for-profit hospital, needs to evaluate a number of items to determine their proper placement on its statement of operations

(either above or below the performance measure of Excess of Revenues over Expenses.

Required

 Select the proper letter from the Where Reported column to match each item in the left-hand column. If an item is presented in two or more places on the statement of operations, provide the correct answer for each placement. It is possible that an item need not be reported on the hospital’s statement of operations.

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1. Bad debts expense. 2. Donated supplies used in patient care. 3. Items Unrestricted investment interest income. 1. Gain on sale of hospital assets. 5. Net assets released from restriction for acquisition of equipment. 5. Net assets released from restriction for use in hospital operations. 7. Gain on sale of donor-required permanently restricted endowment investments. 3. Investment interest income that donor restricted for use in medical care education programs, which the hospital plans to begin next year.. 3. Pledges for a new hospital building wing to be constructed next year. ). Revenue from sales of cafeteria items. 1. Donations of specialized, professional-quality services. 2. Depreciation expense on hospital equipment. 3. Resources designated by the hospital board of directors to be set aside for the new hospital wing. 1. Gift of new heart-monitoring equipment. 5. Charity care provided by the hospital in accordance with its state charter. 5. Contractual adjustment to the normal service charge for persons covered by an insurance company's health insurance. 7. Proceeds of a bond issue for the new wing. 3. Purchase of new operating tables. 9. Recognition of unrealized holding gain for change in market value of investment securities. Income is in excess of amounts designated for current operations. Where Reported A. Above the performance measure line B. Below the performance measure line C. Not reported on the statement of operations