Sovereign Foods suffered a $1,500,000 loss (net of tax) from an earthquake. On the sale of its products, Sovereign Foods had net sales of $6,580,000 and costs and other expenses of $6,505,000. Sovereign Foods does not combine the $1,500,000 earthquake loss with its other costs of $6,505,000, since this item does qualify for any special disclosure. (Ignore taxes)

Ture

False