Question
The income statement usually classifies the results of various transactions and events in one of the following 3 sections: Income from continuing operations Income, gains
The income statement usually classifies the results of various transactions and events in one of the following 3 sections:
- Income from continuing operations
- Income, gains and losses from discontinuing operations.
- Extraordinary Items
Identify each of the transaction or events that follow, and state any assumptions you may feel necessary.
1 | Loss of funds in a bank account in a foreign country as a result of the government confiscation. | ||||||||||
2 | Interests and dividends received from investments in marketable securities. | ||||||||||
3 | Loss in excess of insurance proceeds on an automobile destroyed during an accident. | ||||||||||
4 | Uninsured loss of a house in Spain due to a volcanic eruption. | ||||||||||
5 | Income from the current year of the farm business before its sale. | ||||||||||
6 | Loss from the sale of a farm business. | ||||||||||
7 | Lawyers expense in preparation of a staff restructuring to as a consequence of orders reducing in 50%, will take place next year.manufacturing business. | ||||||||||
8 | Gain from sale of the warehouse, no longer needed in operations. | ||||||||||
9 | Salary of the corporation president. | ||||||||||
10 | Extraordinary depreciation in the machinery for the steel manufacturing business, after the realization of an impairment test. |
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