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Unformatted text preview: (Multiple-step and Extraordinary Items) The following balances were taken from the books of Parnevik Corp. on December 31, 2010. Interest revenue $86,000 Accumulated depreciation-building $28,000 Cash 51,000 Notes receivable 155,000 Sales 1,280,000 Selling expenses 194,000 Accounts receivable 150,000 Accounts payable 170,000 Prepaid insurance 20,000 Bonds payable 100,000 Sales returns and allowances 150,000 Administrative and general expenses 97,000 Allowance for doubtful accounts 7,000 Accrued liabilities 32,000 Sales discounts 45,000 Interest expense 60,000 Land 100,000 Notes payable 100,000 Equipment 200,000 Loss from earthquake damage Building 140,000 (extraordinary item) 120,000 Cost of goods sold 621,000 Common stock 500,000 Accumulated depreciation- equipment 40,000 Retained earnings 21,000 Assume the total effective tax rate on all items is 34%. Assume the total effective tax rate on all items is 34%....
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- Spring '10