Each of the following items was found on the financial statements for Edge Company for the year ended December 31, 2011:

Income from continuing operations ............... $ 125,000

Gain on the sale of discontinued segment, net of taxes $ 9,000..... 50,000

Loss from operation of discontinued segment, net of taxes of $ 9,500. (34,500)

Gain on sale of equipment ....................10,000

Extraordinary loss from earthquake, net of taxes $ 45,000 ....... (120,000)

Requirements

1. For each item listed, indicate the financial statement and appropriate section, if applicable, on which each would appear.

2. Provide a description of each item and give as many details of each item’s financial statement presentation as possible.