Morton Company has the following transactions in the current year. Assuming that all of the transactions are material, which of them will most likely have no effect on current year net income?
A) advance in technology that renders certain inventory items obsolete
B) retirement of callable bonds at a premium
C) sale of used equipment that had been fully depreciated in prior years
D) increase in the fair value of certain available-for-sale securities held as an investment

Question

Quizplus · Accepted Answer

The Answer of Morton Company has the following transactions in the current year. Assuming that all of the transactions are material, which of them will most likely have no effect on current year net income?
A) advance in technology that renders certain inventory items obsolete
B) retirement of callable bonds at a premium
C) sale of used equipment that had been fully depreciated in prior years
D) increase in the fair value of certain available-for-sale securities held as an investment

Morton Company Has the Following Transactions in the Current Year