AcctP5-10[1] - P5-10 1. This should be disclosed in the...

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Unformatted text preview: P5-10 1. This should be disclosed in the Income Statement as an extraordinary i tem because earthquakes are unusual and infrequent for the area. 2. This should be disclosed under other i tems on the Income Statement. I t is i nfrequent but not unusual so i t is not an extraordinary i tem. 3. This should be disclosed in the Income Statement. I t should be included as a current depletion expense because it is a change in an accounting estimate. T he change in the effect on net income and EPS should be disclosed in a note. 4. This should be disclosed under other i tems on the Income Statement. I t is not an extraordinary i tem because it is not unusual or infrequent. 5. This should be disclosed on the Income Statement as an extraordinary i tem because for the company the t ransaction is both unusual and infrequent ( this is the only investment the company has ever made). 6. This should be disclosed in the Income Statement under other i tems. I t is not an extraordinary i tem because earthquakes are not infrequent for the a rea. 7. This should be disclosed on the Retained Earnings Statement as a retrospective adjustment because i t is a cumulative effect on prior years’ i ncome of a change in accounting principle. 8. This should be disclosed on the Income Statement under other i tems because f loods are not infrequent for the area, so i t is not an extraordinary i tem. 9. This should be disclosed on the Income Statement in Results from D iscontinued Operations. 10. This should be disclosed on the Retained Earnings Statement as a prior period adjustment because i t is a correction to last year’s income. 11. This should be disclosed on the Income Statement as an extraordinary i tem because the frost damage is unusual and infrequent. ...
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AcctP5-10[1] - P5-10 1. This should be disclosed in the...

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