Chapter 14, Problem 14.25EX

a)

To determine

Extraordinary Items: There are times when a company faces unusual and infrequent gains and losses. These are accounted and reported as extraordinary items in the financial statement.

Examples:

• Losses incurred due to natural calamities.
• Company’s property taken by a foreign government authority
• Items which do not recur in the foreseeable future

To report: Whether CC has reported the clerical error.

b)

To determine

To report: The change of method of accounting.