Sam Hurd Company Has the Following Items: Write-Down of Inventories

question 72

Multiple Choice

Sam Hurd Company has the following items: write-down of inventories, $120,000; loss on disposal of Sports Division, $185,000; and loss due to strike, $113,000.Ignoring income taxes, what total amount should Sam Hurd Company report as extraordinary losses?

• A)$ -0-.
• B)$185,000.
• C)$233,000.
• D)$298,000.

---

Definitions:

Serial Position Effect

A cognitive phenomenon whereby items at the beginning and end of a list are more easily remembered than those in the middle.

Encoding Specificity Effect

The principle stating that the recall of information is higher if the cues present at the time of encoding are also present at the time of retrieval.

TOT Effect

Refers to the "Tip of the Tongue" phenomenon where a person cannot recall a specific word or term but has a partial recall or feels that the recall is imminent.

Recognition

The cognitive process of identifying and acknowledging the familiarity of an object, concept, or piece of information from previous encounters.