1. At Sunland Company, events and transactions during 2020 included the following. The tax rate for all items is 20%. (1) Depreciation for 2018 was found to be understated by $119400. (2) A strike by the employees of a supplier resulted in a loss of $92400. (3) The inventory at December 31, 2018 was overstated by $156900. (4) A disposal of a component of the business resulted in a $2000000 loss. The effect of these events and transactions on 2020 net income net of tax would be

a.($1754000

b). ($1673920)

c. ($1894960)

d. ($74420).

2.At Oriole Company, events and transactions during 2020 included the following. The tax rate for all items is 20%. (1) Depreciation for 2018 was found to be understated by $151500. (2) A strike by the employees of a supplier resulted in a loss of $126000. (3) The inventory at December 31, 2018 was overstated by $201000. The effect of these events and transactions on 2020 income from continuing operations net of tax would be

($282000).

($382800).

($222000).

($100800).

3. Presented below are data for Crane Company

		2020			2021
Assets, January 1			$8853			$9716
Liabilities, January 1			4869			?
Stockholders' Equity, Jan. 1			?			?
Dividends			1615			1212
Common Stock			1464			1291
Stockholders' Equity, Dec. 31			?			?
Net Income			1926			1301

Stockholders' Equity at January 1, 2021 is

$5759.

$3984.

$4295.

$5910.

4. Typical contractual situations that are disclosed in the notes to the balance sheet include all of the following except

pension obligations.

lease obligations.

debt covenants.

advertising contracts