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Choose the correct.Rouge Company’s $250,000 net income for the quarter ended September 30 included the following after-tax items:∙ A $20,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1.∙ $0 of the $60,000 annual property taxes paid on February 1.For the quarter ended September 30, the amount of net income that Rouge should report isa. $235,000b. $250,000c. $255,000d. $270,000

Choose the correct.Rouge Company’s $250,000 net income for the quarter ended September 30 included the following after-tax items:∙ A $20,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1.∙ $0 of the $60,000 annual property taxes paid on February 1.For the quarter ended September 30, the amount of net income that Rouge should report isa. $235,000b. $250,000c. $255,000d. $270,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Choose the correct.Rouge Company’s $250,000 net income for the quarter ended September 30 included the following after-tax items:
∙ A $20,000 cumulative effect loss resulting from a change in inventory valuation method made
on September 1.
∙ $0 of the $60,000 annual property taxes paid on February 1.
For the quarter ended September 30, the amount of net income that Rouge should report is
a. $235,000
b. $250,000
c. $255,000
d. $270,000

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