Income Statement Transaction Classification

Question 1

Gain on disposal of plant asset

Answer 1

Income from Continuous operations

Question 2

Unearned Revenue

Answer 2

No income statement impact

Question 3

Cumulative effect of change from LIFO to FIFO

Answer 3

Owner’s Equity

Question 4

Unrealized loss/gain on investment in trading securities

Answer 4

IFCO

Question 5

Realized gain on investment in securities AFS

Answer 5

IFCO

Question 6

Unrealized loss on investment in securities AFS

Answer 6

Other Comprehensive Income (OCI)

Question 7

Cumulative effect of change from FIFO to LIFO

Answer 7

Owner’s Equity

Question 8

Effect of change in estimate of useful life for a plant asset

Answer 8

IFCO

Question 9

Estimated disposal loss on discontinued component for which operations and cash flows can be distinguished from the rest of the entity for operation and financial reporting purposes

Answer 9

Income other than from IFCO

Question 10

Deferred tax liabilty

Answer 10

no Income Statement Impact

Question 11

Increase in unrealized pension cost

Answer 11

OCI

Question 12

Restructuring charge

Answer 12

IFCO

Question 13

Income Tax Expense

Answer 13

IFCO

Question 14

Loss from effect of new regulation or law

Answer 14

IFCO

Question 15

Increase in income tax due to extraordinary gain

Answer 15

Income other than IFCO

Question 16

Stock dividend disributed

Answer 16

Owner’s Equity

Question 17

Accumulated OCI

Answer 17

Owner’s Equity

Question 18

Dividends received on investment in securities AFS

Answer 18

IFCO

Question 19

Dividends received on equity method investment

Answer 19

No impact on Income Statement