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At Ruth Company, events and transactions during 2017 included the following. The tax rate for all items is 30%. Depreciation for 2015 was found to
At Ruth Company, events and transactions during 2017 included the following. The tax rate for all items is 30%. Depreciation for 2015 was found to be understated by $120,000. A strike by the employees of a supplier resulted in a loss of $100,000. The inventory at December 31, 2015, was overstated by $160,000. A disposal of a component of the business resulted in a $2,000,000 loss. The effect of these events and transactions on 2017 net income net of tax would be
($70,500).
($1,470,000).
($1,554,000).
($1,666,000).
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