The following information is available for Pink Company for 2017:
a. In early April Pink made major repairs to its equipment at a cost of $90,000. These repairs will benefit the remainder of 2017 operations.
b. At the end of May, Pink sold machinery with a book value of $35,000 for $45,000.
c. An inventory loss of $60,000 from market decline occurred in July. In the fourth quarter the inventory had a market value recovery that exceeded the market decline by $30,000.
Required:
Compute the amount of expense/loss that would appear in Pink Company's June 30, September 30, and December 31, 2017, quarterly financial statements.

Question

Quizplus · Accepted Answer

The Answer of The following information is available for Pink Company for 2017:
a. In early April Pink made major repairs to its equipment at a cost of $90,000. These repairs will benefit the remainder of 2017 operations.
b. At the end of May, Pink sold machinery with a book value of $35,000 for $45,000.
c. An inventory loss of $60,000 from market decline occurred in July. In the fourth quarter the inventory had a market value recovery that exceeded the market decline by $30,000.
Required:
Compute the amount of expense/loss that would appear in Pink Company's June 30, September 30, and December 31, 2017, quarterly financial statements.

The Following Information Is Available for Pink Company for 2017