Choice "A" is correct. Actual hail damage must be reported. Since the hailstorms are frequent, the damage is not considered an extraordinary gain/loss. Thus, the damages would be shown in continuing operations. No separate disclosure is necessary since hail damage is a common occurrence.
Choice "d" is incorrect. Hailstorms are not unusual and infrequent so the loss could not be classified as extraordinary.
Choice "b" is incorrect. Actual hail damage must be reported. Estimated hail damage may be probable but is not estimable; so it should not be included in income calculations.
Choice "c" is incorrect. Estimated hail damage may be probable but is not estimable; so it should not be included in income calculations.