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ACC - Norse Manufacturing Inc.

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Question;Norse Manufacturing Inc. Prepares an annual single, continuous statement of income and comprehensive income. The following situations occurred during the company's 2013 fiscal year.1. Restructuring costs were incurred due to the closing of a factory2. Investments were sold, and a loss was recognized3. Gains from foreign currency translation were recognized4. Interest expense was incurred5. A division was sold that qualifies as a separate component of the entity according to GAAP6. Obsolete inventory was written off7. The controller discovered an error in the calculation of 2012's patent amortization expense8. A volcano destroyed a storage facility on a South Sea island. The event is considered to be unusual and infrequent in occurrenceRequired:1. For each situation, identify the appropriate reporting treatment from the list below (consider each event to be material)a. As a component of operating incomeb. As a non-operating income item (other income or expense)c. As a separately reported itemd. As an other comprehensive income iteme. As an adjustment to retained earnings2. Identify the situations that would be reported net-of-tax

 

Paper#40453 | Written in 18-Jul-2015

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