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At Ruth Company, events and transactions during 2014 included the following. The tax rate for all items is 30%.(1) Depreciation for 2012 was found to be understated by $90,000.(2) A strike by the employees of a supplier resulted in a loss of $75,000.(3) The inventory at December 31, 2012 was overstated by $120,000.(4) A flood destroyed a building that had a book value of $1,500,000. Floods are very uncommon in that area.The effect of these events and transactions on 2014 income from continuing operations net of tax would be
Hasty Generalization
A logical fallacy where a conclusion is not logically justified by sufficient or unbiased evidence.
Arguments
Reasons given in proof or rebuttal, or discussions aimed at reaching a conclusion through reasoning.
Trout
A common name for several species of freshwater fish belonging to the salmon family, often valued as food and game.
Reds
Refers colloquially to red wine or to teams wearing red uniforms; context could specify further meaning.
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