Bryce Carson, CFO of Elk Corporation, has written a memo to Richard Washington, Controller, addressing items brought up in the review of the June 20X5 financial statements. Elk Corporation is on a calendar year. The June 20X5 financial statements are scheduled to be released August 9, 20X5. Review the memo below, correcting any errors. To revise the document, click on each segment of underlined text below and select the needed correction, if any, from the list provided. If the underlined text is already correct in the context of the document, select [Original Text] from the list. If removal of the underlined text is the best revision of the document as a whole, select [Delete Text] from the list if Richard, You brought up some good points in the review of the June 20X5 financial statements in our staff meeting today. I have addressed the major issues below. Please see me if these don't cover your concerns. Your feedback is always appreciated. The bankruptcy filing of Pearson Manufacturing was not expected. They were working on developing the new trademarked \"Elk Harrison Valves.\" A \"significant estimates\" disclosure is needed in the financial statement this quarter due to the possible failure of the party to perform. The Board of Directors met and reviewed Financial Statement Disclosures for Quarter 2. The Board has identified that the computer and security equipment needs to be separated for PP\\&E presentation and disclosed as a significant change in an accounting estimate. A new segment of Tools was added this year to our operations. After a review of our segment results for Quarter 2, I have determined which operating segments must be separately disclosed. The segments of Plumbing, Heating \\& Cooling, Pipe Fittings, and Tools meet the quantitative thresholds. Mr. Alicea, our CEO, shared with me a letter he received from our attorney regarding litigation. Both settlements are considered recognized subsequent events and require recognition and disclosure. There has been some confusion with interim periods and the inventory mark down that occurred in the plumbing segment this quarter. The loss from the write-down of inventory below cost may be deferred, but the cost of goods sold for the interim period should include the expected cost of replacing the liquidated inventory. Bryce Bryce Carson, CFO of Elk Corporation, has written a memo to Richard Washington, Controller, addressing items brought up in the review of the June 20X5 financial statements. Elk Corporation is on a calendar year. The June 20X5 financial statements are scheduled to be released August 9, 20X5. Review the memo below, correcting any errors. To revise the document, click on each segment of underlined text below and select the needed correction, if any, from the list provided. If the underlined text is already correct in the context of the document, select [Original Text] from the list. If removal of the underlined text is the best revision of the document as a whole, select [Delete Text] from the list if Richard, You brought up some good points in the review of the June 20X5 financial statements in our staff meeting today. I have addressed the major issues below. Please see me if these don't cover your concerns. Your feedback is always appreciated. The bankruptcy filing of Pearson Manufacturing was not expected. They were working on developing the new trademarked \"Elk Harrison Valves.\" A \"significant estimates\" disclosure is needed in the financial statement this quarter due to the possible failure of the party to perform. The Board of Directors met and reviewed Financial Statement Disclosures for Quarter 2. The Board has identified that the computer and security equipment needs to be separated for PP\\&E presentation and disclosed as a significant change in an accounting estimate. A new segment of Tools was added this year to our operations. After a review of our segment results for Quarter 2, I have determined which operating segments must be separately disclosed. The segments of Plumbing, Heating \\& Cooling, Pipe Fittings, and Tools meet the quantitative thresholds. Mr. Alicea, our CEO, shared with me a letter he received from our attorney regarding litigation. Both settlements are considered recognized subsequent events and require recognition and disclosure. There has been some confusion with interim periods and the inventory mark down that occurred in the plumbing segment this quarter. The loss from the write-down of inventory below cost may be deferred, but the cost of goods sold for the interim period should include the expected cost of replacing the liquidated inventory. Bryce