A review of the December 31, 2012, financial statements of Somer Corporation rev

Question

A review of the December 31, 2012, financial statements of Somer Corporation revealed that under the caption "extraordinary losses," Somer reported a total of $1,030,000. Further analysis revealed that the $1,030,000 in losses was comprised of the following items:(1) Somer recorded a loss of $300,000 incurred in the abandonment of equipment formerly used in the business.(2) In an unusual and infrequent occurrence, a loss of $500,000 was sustained as a result of hurricane damage to a warehouse.(3) During 2012, several factories were shut down during a major strike by employees, resulting in a loss of $170,000.(4) Uncollectible accounts receivable of $60,000 were written off as uncollectible.Ignoring income taxes, what amount of loss should Somerreport as extraordinary on its 2012 income statement? Answer $1,030,000. $300,000. $500,000. $800,000.

Explanation / Answer

extraordinary losses = 1030000 loss = 300000 loss = 500000 loss = 170000 uncollectecd = 60000 out of all these, the extraordinary loss that somerepoort gas to report is $1030000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.