Question
An inventory loss from market decline of $1,600,000 occurred in May 2018, after its March 31, 2018 quarterly report was issued. None of this loss
An inventory loss from market decline of $1,600,000 occurred in May 2018, after its March 31, 2018 quarterly report was issued. None of this loss was recovered by the end of the year. How should this loss be reflected in the company's quarterly income statements?
Three Months Ended
| 3/31/18 | 6/30/18 | 9/30/18 | 12/31/18 | |
| a | $ 0 | $ 0 | $ 0 | $ 1,600,000 |
| b | $ 0 | $ 533,333 | $ 533,000 | $ 533,000 |
| c | $ 0 | $ 1,600,000 | $ 0 | $ 0 |
| d | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 |
Explain your answer.
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Auditing Concepts For A Changing Environment With IDEA Software
Authors: Larry E. Rittenberg, Bradley J. Schwieger
4th Edition
0387321500, 978-0324180237
