An Inventory Loss from Market Decline of $1,200,000 Occurred in April

question 43

Multiple Choice

An inventory loss from market decline of $1,200,000 occurred in April 2014.Discus Company recorded this loss in April 2014 after its March 31,2014,quarterly report was issued.None of this loss was recovered by the end of the year.How should this loss be reflected in the quarterly income statements of Discus Company? Three months ended (2014) :
March 31 June 30 September 30 December 31

• A) 0 0 0 $900,000
• B) 0 $400,000 $400,000 $400,000
• C) 0 $1,200,000 0 0
• D) $300,000 $300,000 $300,000 $300,000

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Dominant Position

A situation in which a person or entity has greater power, influence, or control within a particular context or market.

Evidence of Expertise

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