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Accounting
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Chapter 4 / Exercise EX4-26
Accounting
Reeve/Warren
Expert Verified
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Accounting
The document you are viewing contains questions related to this textbook.
Chapter 4 / Exercise EX4-26
Accounting
Reeve/Warren
Expert Verified
4-33(d) A large diversified company sells a block of shares from its portfolio of securities which it has acquired for investment purposes. This is the first sale from its portfolio of securities.(e) An earthquake destroys one of the oil refineries owned by a large multi-national oil company. Earthquakes are rare in this geographical location.(f) A company experiences a material loss in the repurchase of a large bond issue that has been outstanding for 3 years. The company regularly repurchases bonds of this nature. NOYESNOLO 4Are these items Extraordinary?Extraordinary ItemsExtraordinary ItemsAdvance slide in presentation mode to reveal answers.
4-34Illustration: Schindler Co. has income before income tax and extraordinary item of $250,000. It has an extraordinary gain of $100,000 from a condemnation settlement received on one its properties (30 percent tax rate). Income statement presentation:Extraordinary GainsLO 4 Explain how to report various income items.Illustration 4-13Extraordinary ItemsExtraordinary Items
4-35Illustration: Schindler Co. has income before income tax and extraordinary item of $250,000. It suffers an extraordinary loss from a major casualty of $100,000 (30 percent tax rate). The loss provides a positive tax benefit. Income statement presentation:Extraordinary LossesLO 4 Explain how to report various income items.Illustration 4-14Extraordinary ItemsExtraordinary Items
4-36Extraordinary Itemsare reported after“Income from continuing operations” and after“Discontinued Operations.”Illustration 4-9Illustration 4-19
4-37Irregular transactions such as discontinued operations and extraordinary items should be reported separately in Question
LO 4 Explain how to report various income items.Reporting Various Income ItemsReporting Various Income Items

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