Use the financial data for Randa Merchandising, Inc., in Exercise 13-13 to prepare its income statement for calendar year 2016. (Ignore the earnings per share section.)

In 2016, 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 some major sections of an income statement follows:

A. Net sales less operating expense section

B. Other unusual and/or infrequent gains (losses)

C. Taxes reported on income (loss) from continuing operations

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 2016 income statement by writing the letter of the appropriate section in the blank beside each item.

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Section Item Debit Credit $2,900,000 states condemnation of 2. Gain on 3. Cost of goods sold 5. Depreciation expense. company 230,000 1,480,000 217,000 232,000 6. Gain on sale of wholesale business segment (net of tax) 775,000 7. Loss from operating wholesale business 44000 640,000 srygn (nes:เท้8ax) … 8. Loss of assets from meteor strike, net of tax