Question
Wang Industries, a company located in San Diego, suffered considerable damage to its warehouse due to a January blizzard. The total cost to repair the
Wang Industries, a company located in San Diego, suffered considerable damage to its warehouse due to a January blizzard. The total cost to repair the damage was $200,000. Income from operations (not including the $200,000 in repair costs) was $335,450. In the income statement for the year ended 12/31, Wang Industries _______________.
Select one:
a. Could disclose the cost to repair the damage but not include the amount in the income statement
b. Could report the $200,000 as as part of discontinued operations, net of tax.
c. Could report the $200,000, net of taxes, as a separate line item in the Other expenses and losses section
d. Could either report the $200,000 as a separate line item in the Other expenses and losses section or include the amount with similar costs in that section and disclose the details in a note
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