1. A review of the December 31, 2014, financial statements of Som Corporation revealed that under the caption "extraordinary losses," Som reported a total of $1,130,000. Further analysis revealed that the $1,130,000 in losses was comprised of the following items:

(1) Som recorded a loss of $300,000 incurred in the abandonment of equipment formerly used in the business.(2) In an unusual and infrequent occurrence, a loss of $600,000 was sustained as a result of hurricane damage to a warehouse.(3) During 2014, several factories were shut down during a major strike by employees, resulting in a loss of $170,000.(4) Uncollectible accounts receivable of $60,000 were written off as uncollectible.

Ignoring income taxes, what amount of loss should Som report as extraordinary on its 2014 income statement?

a. $300,000.

b. $600,000.

c. $900,000.

d. $1,130,000.

2. Perry Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2014, included the following expense accounts:

Accounting and legal fees $280,000

Advertising 240,000

Freight-out 150,000

Interest 120,000

Loss on sale of long-term investments 60,000

Officers' salaries 360,000

Rent for office space 360,000

Sales salaries and commissions 270,000

One-half of the rented premises is occupied by the sales department.

How much of the expenses listed above should be included in Perry's general and administrative expenses for 2014?

a. $820,000.

b. $880,000.

c. $940,000.

d. $1,000,000.

3. If $5,000 is deposited in a savings account today, what amount will be available three years from today?

a. $5,000