Problem Three: Nonrecurring Items For each of these nonrecurring items give an example and indicate (match with) the appropriate accounting…

3. Problem Three: Nonrecurring Items For each of these nonrecurring items give an example and indicate (match with) the appropriate accounting treatment.Extraordinary item Prior period adjustment Change in accounting estimate Change in accounting principle Discontinued operation Special items Comprehensive income items Change in reporting entity SEC Enforcement Releases A. Shown net as a separate line item between net income and comprehensive income, no restatement.B. Income statement line items adjusted as appropriate, gross or net, prior years restated.C. Gross amount is part of its regular income or expense line item in income from continuing operations, prior years restated.D. Gross amount is part of its regular income or expense line item in income from continuing operations, no restatement.E. Shown gross as a separate line item in income from continuing operations, no restatement.F. Shown net as a separate line item between income from continuing operations and net income, prior years restated.G. Shown cumulative net as a separate line item between income from continuing operations and net income, no restatement.H. Shown net as a separate line item between income from continuing operations and net income, no restatement.I. Not in income statement, opening retained earnings is changed by net amount, no restatement.

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