Brief Ex $5-2($LO $5\mathrm{.}3)$ There are five components of earnings of reported income:

There are five components of earnings of reported income: NIReportedNIReported $,$ where NIReported$=$NIPersistent$+$NITrans$\_$Economic$+$NITrans$\_$Managed$+$Accrual$$errorUnint$+$Accrual$$errorIntNIReported$=$NIPersistent$+$NITrans$\_$Economic$+$NITrans$\_$Managed$+$Accrual$$errorUnint$+$Accrual$$errorInt

Required:

For each of the following examples, identify which of the five components is represented. ExamplesComponents of Net Income $($Earnings$)1.$ Reduction in R&D expenditures in the fourth quarter coupled with an increase in R&D expenditures in the next quarter$\mathrm{.}2.$ Income from normal, ongoing operations$\mathrm{.}3.$ Accrual estimation errors such as management purposely having a smaller warranty expense than is required to report higher earnings$\mathrm{.}4.$ Despite their best efforts, management overestimates bad debt expense$\mathrm{.}5.$ A firm has plans to divest business units in the near future and will report earnings from these soon$-$to$-$be divested units separately.