At Ruth Company, Events and Transactions During 2014 Included the Following

question 122

Multiple Choice

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 net income net of tax would be

• A) ($52,500).
• B) ($1,102,500).
• C) ($1,165,500).
• D) ($1,249,500).

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Definitions:

Job Satisfaction

The level of contentment employees feel toward their jobs, influenced by factors like the nature of the work, the working environment, and compensation.

Satisfier Factor

Elements of a job that increase employees' satisfaction and motivation, according to Herzberg's two-factor theory of motivation.

Job Content

Describes the specific duties, responsibilities, and tasks that constitute a particular job or role within an organization.

Two-Factor Theory

A psychological theory proposed by Herzberg that explains job satisfaction and motivation by differentiating between factors that cause satisfaction (motivators) and those that cause dissatisfaction (hygiene factors).