Extraordinary Item
Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or extraordinary (E).
a. Gain on sale of land condemned by the local government for a public works project.
b. Uninsured flood loss. (Flood insurance is unavailable because of periodic flooding in the area.)
c. Loss on the disposal of equipment considered to be obsolete because of the development of new technology.
d. Uncollectible accounts expense.
e. Loss on sale of investments in stocks and bonds.
f. Uninsured loss on building due to hurricane damage. The building was purchased by the company in 1910 and had not previously incurred hurricane damage.
g. Interest revenue on notes receivable.