ACC 610-Financial Reporting 1 Answers
(83.) At Ruth Company, events and transactions during 2012 included the following. The tax rate for all items is 30%.
(1) Depreciation for 2010 was found to be understated by $60,000.
(2) A strike by the employees of a supplier resulted in a loss of $50,000.
(3) The inventory at December 31, 2010 was overstated by $80,000.
(4) A flood destroyed a building that had a book value of $1,000,000. Floods are very uncommon in that area.