Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 5.5MC
Allison Corporation’s current year income from continuing operations before taxes was $1,000,000 before taking the following items into consideration:
Depreciation was understated by $100,000.- A strike by the employees of a supplier resulted in a loss of $200,000. This strike was the first such strike that Allison had encountered.
- The inventory at December 31 of the prior year was overstated by $300,000 The inventory at December 31 of the current year was correct.
- A food in Allison’s Houston facility destroyed equipment worth $500,000 The facility had just been rebuilt from damages that occurred in a flood in the prior year.
What was Allison's adjusted income from containing operations before taxes?
- a. $1,000 003
- b. $030,000
- c. $700,000
- d. $500,000
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Chapter 5 Solutions
Intermediate Accounting
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