In 2014, Walker Company wrote off a $300,000 debt from a major customer, lost $2,250,000 when a foreign country devalued its currency, gained $2,500,000 when a manufacturing plant was destroyed by a unusual and infrequent flood, lost $600,000 on the early retirement of its long-term bonds, and lost $75,000 on the sale of stock from its investment portfolio. What amount of extraordinary items (before income taxes) will Walker report in 2014?

Question

Quizplus · Accepted Answer

Extraordinary items are events that are both unusual and infrequent. The $2,500,000 gain from the destruction of a manufacturing plant by an unusual and infrequent flood qualifies as an extraordinary item.

In 2014, Walker Company Wrote Off a $300,000 Debt from a Major