SHADOW BONE Company reported net income of P7,500,000 for the current year: The auditor raised questions about the following amounts that has been included in net income: Unrealized loss on foreign currency translation Gain on early retirement of bonds payable Debit adjustment of profit of prior year for error in depreciation, net of tax effect Loss from fire. 500,000 2,200,000 750,000 1,400,000
SHADOW BONE Company reported net income of P7,500,000 for the current year: The auditor raised questions about the following amounts that has been included in net income: Unrealized loss on foreign currency translation Gain on early retirement of bonds payable Debit adjustment of profit of prior year for error in depreciation, net of tax effect Loss from fire. 500,000 2,200,000 750,000 1,400,000
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...
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Question
What amount should be reported as adjusted net income for the current year?
a. 6,250,000
b. 9,500,000
c. 8,000,000
d. 8,750,000
![SHADOW BONE Company reported net income of P7,500,000 for the current year:
The auditor raised questions about the following amounts that has been included in net income:
Unrealized loss on foreign currency translation
Gain on early retirement of bonds payable
Debit adjustment of profit of prior year for error
in depreciation, net of tax effect
500,000
2,200,000
750,000
Loss from fire.
1,400,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2eb04853-8527-4979-9cae-8516db68b6ff%2F9ed31e0d-1f57-44cc-a280-b5dd990ca528%2Fg7fvfje_processed.jpeg&w=3840&q=75)
Transcribed Image Text:SHADOW BONE Company reported net income of P7,500,000 for the current year:
The auditor raised questions about the following amounts that has been included in net income:
Unrealized loss on foreign currency translation
Gain on early retirement of bonds payable
Debit adjustment of profit of prior year for error
in depreciation, net of tax effect
500,000
2,200,000
750,000
Loss from fire.
1,400,000
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