27. Romulan Corporation incurred the following losses during 2011: Loss of $100,000 was incurred in the abandonment of equipment. Accounts receivable of $30,000 were written off as uncollectible. Several factories were shut down during a strike at a cost of $240,000. . Loss of $150,000 was sustained as a result of flood damage, an unusual and infrequent occurrence. Ignoring income taxes, what amount of loss should Romulan report as extraordinary on its annual income statement? a. $270,000 b. $150,000 c. $520,000 d. $100,000 28. Which of the following circumstances would require recording an accrual for a loss contingeney under current generally accepted accounting principles? a. Event is unusual in nature and event occurs infrequently b. Event is unusual in nature and occurrence of event is probable e. Amount of loss is reasonably estimable and occurrence of event is probable d. Amount of loss is reasonably estimable and event occurs infrequently The transaction approach to determining income is a concept in which a. market values adjusted for the effects of inflation or deflation are used to calculate 29 income. b. income is measured as the amount that an entity could consume during a period and be as well off at the end of that period as it was at the beginning. the financial statement effects of business events are classified as revenues, gains, expenses, and losses, which are used to measure and define income. income equals the change in market value of the firm's outstanding common stock for the period. c. d. In relation to a set of 2012 basic financial statements, a subsequent event is one that a. 30. involves uncertainty as to possible gain or loss that will ultimately be resolved in 2013 or later b. requires an appropriate adjusting entry to be made as of the end of 2012 c. occurs after the 2012 financial statements are issued. d. occurs before the 2012 financial statements are issued