Response to the following questions:
1. What are extraordinary items? How are they shown on the income statement? Why are they shown in that manner?
2. Which of the following would be classified as extraordinary?
a. Selling expense
b. Interest expense
c. Gain on the sale of marketable securities
d. Loss from flood
e. Income tax expense
f. Loss from prohibition of red dye
g. Loss from the write-down of inventory.
If possible, please give examples to better understand your response.