Raymond Corporation is a new business that recycles consumption leftovers. The investors in Raymond's stock, expecting losses in the early stages of business, are impressed with its early net incomes resulting in the ballooning of its stock price to $32 a share. During the second year of operations, Raymond's reported net income of $1,300,000. However, a few months later, independent auditors reported existence of accounting irregularities concerned with the capitalization of $3 million dollars of expenditures to Raymond's land account that should have been expensed. What is the appropriately adjusted net income for the second year of operations?

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The Answer of Raymond Corporation is a new business that recycles consumption leftovers. The investors in Raymond's stock, expecting losses in the early stages of business, are impressed with its early net incomes resulting in the ballooning of its stock price to $32 a share. During the second year of operations, Raymond's reported net income of $1,300,000. However, a few months later, independent auditors reported existence of accounting irregularities concerned with the capitalization of $3 million dollars of expenditures to Raymond's land account that should have been expensed. What is the appropriately adjusted net income for the second year of operations?

Raymond Corporation Is a New Business That Recycles Consumption Leftovers