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:

Quantitative Sociology

A research method in sociology that focuses on numerical and statistical techniques to study patterns, behaviors, and trends within social groups.

Qualitative Sociology

The study of social phenomena focused on understanding human behavior from the perspective of those being studied, typically using methods like interviews or observation.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, resulting in increased interconnectedness of the world's economies, cultures, and populations.

Theological Stage

The earliest stage in Comte's law of three stages, characterized by human understanding of the world as explained by supernatural beings and religious leaders.