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Use the following information for questions For Pear Limited, events and transactions during 2015 included the following.The tax rate for all items is 30%. 1) Depreciation for 2014 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, 2013 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 2015 income from continuing operations net of tax would be
Budgeted Units
The quantity of product or services that a company plans to produce or sell in a specific period, detailed in its budget.
Inventory
The total amount of goods and materials held by a business for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.
Manufactured Units
Manufactured units refer to the total number of units produced by a company during a specific period through its manufacturing process.
April
The fourth month of the year in the Gregorian calendar.
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