subject: intermediate accounting (act410)

Question 3: (12 Marks, 2 each) For each of the items listed below, indicate how it should be treated in the financial statements. 1. The company incurred a loss from impairment of plant assets. 2. Obsolete inventory was written off. This was the first loss of this type in the company's history. 3. Loss on the disposal of a component of the business. 4. Recognition of income earned last year which was inadvertently omitted from last year's income statement. 5. The company neglected to record its depreciation in the previous year. 6. Stopping all production in the United States. The manufacturing operations were relocated in Mexico