Use the Following Information for Questions

question 20

Multiple Choice

Use the following information for questions
At Iserlohn Company, events and transactions during 2011 included the following.The tax rate for all items is 30 percent.
(1) Amortization for 2009 was found to be understated by $30,000.
(2) A strike by the employees of a supplier resulted in a loss of $20,000.(3) The inventory at December 31, 2009 was overstated by $40,000.
(4) A flood destroyed a building that had a book value of $400,000.Floods are very uncommon in that area.
-The effect of these events and transactions on the beginning balance of 2011 retained earnings would be

• A)$14,000.
• B)$294,000.
• C)$21,000.
• D)$343,000.

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Definitions:

Intrinsically Motivated

Being internally driven to perform an activity, task, or pursue a goal for its own sake, rather than for some external reward or pressure.

Charismatic

Possessing an exceptional ability to attract, inspire, and influence people around them.

Task-Oriented

An approach or behavior focused primarily on completing given tasks or objectives, often highlighting efficiency and effectiveness.

Organizational Situations

Unique sets of conditions, circumstances, or contexts within which organizations operate, affecting decisions and actions.