A Review of the December 31, 2014, Financial Statements of Somer

question 23

Multiple Choice

A review of the December 31, 2014, financial statements of Somer Corporation revealed that under the caption "extraordinary losses," Somer reported a total of $1,130,000. Further analysis revealed that the $1,130,000 in losses was comprised of the following items:(1) Somer recorded a loss of $300,000 incurred in the abandonment of equipment formerly used in the business.(2) In an unusual and infrequent occurrence, a loss of $600,000 was sustained as a result of hurricane damage to a warehouse.(3) During 2014, several factories were shut down during a major strike by employees, resulting in a loss of $170,000.(4) Uncollectible accounts receivable of $60,000 were written off as uncollectible.Ignoring income taxes, what amount of loss should Somer report as extraordinary on its 2014 income statement?

• A) $300,000.
• B) $600,000.
• C) $900,000.
• D) $1,130,000.

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Definitions:

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, responsible for focusing most of the light that enters the eye.

Conversion of Energy

The process of transforming energy from one form to another, such as converting kinetic energy to electrical energy in a power plant.

Color Vision Deficiency

A condition where an individual's ability to see colors, or differences in colors, is impaired.

Retinal Disparity

The slight difference in the relative position of an object as seen by each eye, which is important for depth perception.