Exercise 12-11A Classify income statement items (LO12-5) 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 Required: Select whether each of the following items should be classified as discontinued operations, other revenues, or other expenses. Items Description One of the company's restaurants was destroyed in a forest fire that raged through Southern California. Uninsured losses Other expenses from the fire are estimated to be $450,000 California Sports Grill has three operating divisions restaurants, catering, and frozen retail foods. The company sells the b. 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 An employee strike to increase wages and benefits shut down operations for several days at an estimated cost of $200,000 A restaurant waiter slipped on a wet floor and sued the company. The employee won a settlement for $100,000, but Califomia Sports Grill has not yet paid the settlement Other revenues The company owns and operates over 40 restaurants but sold one restaurant this year at a gain of S650,000 C d