As an auditor for Bernard and Thomas, you are responsible for determining the proper classification of income statement items in the audit of California Sports Grill.
a. One of the company’s restaurants was destroyed in a forest fire that raged through Southern California. Uninsured losses from the fire are estimated to be $450,000.
b. California Sports Grill has three operating divisions: restaurants, catering, and frozen retail foods. The company sells the frozen retail foods division of the business for a profit of $2.4 million in order to focus more on the restaurant and catering business.
c. An employee strike to increase wages and benefits shut down operations for several days at an estimated cost of $200,000.
d. A restaurant waiter slipped on a wet floor and sued the company. The employee won a settlement for $100,000, but California Sports Grill has not yet paid the settlement.
e. The company owns and operates over 40 restaurants but sold one underperforming restaurant this year at a loss of $650,000.

Required:
Indicate whether each item should be classified as discontinued operations, extraordinary items, other revenues, or other expenses. Provide a brief justification for each answer.