Identify how the following should be treated in the financial statements (Continuing Operations, Discontinuing Operations, Prior Period Adjustment)

Discontinuance of all production in the United States. The manufacturing operations were relocated in Mexico.

Continuing Operations

Loss on sale of investments. The company last sold some of its investments two years ago.

Continuing Operations

Obsolete inventory was written off. This was the first loss of this type in the company's history

Continuing Operations

Settlement of litigation with federal government related to income taxes of three years ago. The company is continually involved in various adjustments with the federal government related to its taxes.

Continuing Operations

The bad debt rate was increased from 1% to 2%, thus increasing bad debt expense.

Continuing Operations

The company sold one of its warehouses at a loss.

Continuing Operations

Loss on the disposal of a component of a business.

Discontinued Operations

Recognition of income earned last year which was inadvertently omitted from last year's income statement.

Prior Period Adjustment

The company neglected to record its depreciation in the previous year.

Prior Period Adjustment