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Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik
Edition 10ISBN: 978-1260575910Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik
Edition 10ISBN: 978-1260575910 Exercise 47
Ming Company's $100,000 income for the quarter ended September 30 included the following after-tax items:
• $20,000 of a $40,000 extraordinary loss, realized on August 15; the other $20,000 was allocated to the fourth quarter of the year.
• A $16,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1.
• $ 12,000 of the $48,000 annual property taxes paid on February 1.
For the quarter ended September 30, the amount of net income that Ming should report is
a.$80,000.
b.$88,000.
c.$96,000.
d.$116,000.
• $20,000 of a $40,000 extraordinary loss, realized on August 15; the other $20,000 was allocated to the fourth quarter of the year.
• A $16,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1.
• $ 12,000 of the $48,000 annual property taxes paid on February 1.
For the quarter ended September 30, the amount of net income that Ming should report is
a.$80,000.
b.$88,000.
c.$96,000.
d.$116,000.
Explanation
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Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik
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