A loss of

$68,000

before taxes as a result of disposing of its clothing division. Assume that this transaction meets the criteria for discontinued operations.\ An uninsured

$140,000

loss due to a fire.\ At the beginning of 2015 , the corporation purchased a machine for

$200,000

(salvage value of

$30,000

that had a useful life of 10 years. The bookkeeper used straight-line depreciation for 2015,2016 , and 2017 , but failed to deduct the salvage value in computing the depreciation base.\ The corporation decided to change its method of inventory pricing from averag FIFO method. The effect of this change on prior years is to increase 2015 incom and decrease 2016 income by

$21,000

before taxes. The FIFO method has been used for 2017.

3. A loss of $68,000 before taxes as a result of disposing of its clothing division. Assume that this transaction meets the criteria for discontinued operations. 4. An uninsured $140,000 loss due to a fire. 5. At the beginning of 2015 , the corporation purchased a machine for $200,000 (salvage value of $30,000 ) that had a useful life of 10 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to deduct the salvage value in computing the depreciation base. 6. The corporation decided to change its method of inventory pricing from averag FIFO method. The effect of this change on prior years is to increase 2015 incom and decrease 2016 income by $21,000 before taxes. The FIFO method has been used for 2017