Use the Following Information for the Following Questions

question 60

Multiple Choice

Use the following information for the following questions:
The tax rate for all items is 30%.
1. Depreciation for 2019 was found to be understated by $30,000.
2. A 2020 strike by the employees of a supplier resulted in a loss of $20,000.
3. The inventory at December 31, 2018 was overstated by $40,000.
4. A 2020 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 2020 income from continuing operations net of tax would be

• A) $14,000.
• B) $35,000.
• C) $63,000.
• D) $294,000.

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Definitions:

Job Enlargement

An approach to job design that increases the number and variety of tasks that an individual performs.

Scope

The extent of the area or subject matter that something deals with or to which it is relevant.

Telecommuting

Working from a remote location outside of the traditional office environment, typically facilitated by digital communication technologies.

Nontraditional Work Schedule

Employee work schedules that differ from the typical Monday to Friday, 9 to 5 routine.