question at murray company events and transactions during 2016 includedthe following 4305443

question at murray company events and transactions during 2016 includedthe following 4305443

Question

At Murray Company, events and transactions during 2016 includedthe following. The tax rate for all items is 30%.

(1)   Depreciation for 2014 was found to be understatedby $60,000.

(2)   A strike by the employees of a supplier resulted ina loss of $40,000.

(3)   The inventory at December 31, 2013 was overstatedby $70,000.

(4)   A flood destroyed a building that had a book valueof $1,000,000. Floods are very uncommon in that area.

(5)    A loss of $60,000 from sale ofinventory.

           The effect of these events and transactions on 2016 income fromcontinuing operations net of tax would be

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