【正文】 ear 4a.$(600,000)$850,000b.$(650,000)$900,000c.$0$250,000d.$250,000$016. On April 30, Deer Corp. approved a plan to dispose of a ponent of its business. For the period January 1 through April 30, the ponent had revenues of $500,000 and expenses of $800,000. The assets of the ponent were sold on October 15 at a loss. In its ine statement for the year ended December 31, how should Deer report the ponent39。s gain on the purchase of its own bonds exceeded its loss on the sale of the Iron bonds. Assume the transaction to purchase its own outstanding bonds is unusual in nature and has occurred infrequently. Under . GAAP, Gold should report the:a.Effect of its own bond transaction gain in ine before extraordinary items, and report the Iron bond transaction as an extraordinary loss.b.Net effect of the two transactions as an extraordinary gain.c.Effect of its own bond transaction as an extraordinary gain, and report the Iron bond transaction loss in ine before extraordinary items.d.Net effect of the two transactions in ine before extraordinary items.18. During the current year, both Raim Co. and Cane Co. suffered losses due to the flooding of the Mississippi River. Raim is located two miles from the river and sustains flood losses every two to three years. Cane, which has been located 50 miles from the river for the past 20 years, has never before had flood losses. How should the flood losses be reported in each pany39。s current year financial statements as a:a.Prior period adjustment resulting from the correction of an error.b.Component of ine after extraordinary item.c.Prior period adjustment resulting from the change in accounting principle.d.Component of ine before extraordinary item.20. Which of the following should be included in general and administrative expenses?InterestAdvertisinga.NoYesb.NoNoc.YesNod.YesYes21. Under . GAAP, a material loss should be presented separately as a ponent of ine from continuing operations when it is:a.Not unusual in nature but infrequent in occurrence.b.A cumulative effect type change in accounting principle.c.Unusual in nature and infrequent in occurrence.d.An extraordinary item.22. On October 1, 20X4, Host Co. approved a plan to dispose of one of the pany39。s ine tax rate is 30%.Orca should report the cumulative effect of this accounting change as a(n):a.Adjustment to beginning retained earnings.b.Component of ine from continuing operations.c.Extraordinary item.d.Component of ine after extraordinary items.24. On October 1, Year 1, Wand, Inc. mitted itself to a formal plan to sell its Kam division39。s assets was $25,000 less than the carrying value. Wand also estimated that Kam would incur operating losses of $100,000 for the period of October 1, Year 1 through December 31, Year 1 and $50,000 for the period January 1, Year 2 through February 28, Year 2. All estimates proved to be materially correct. Disregarding ine taxes, what should Wand report as loss from discontinued operations in its parative Year 1 and Year 2 ine statements?Year 1Year 2a.$125,000$50,000b.$0$175,000c.$100,000$75,000d.$175,000$025. Under . GAAP, a transaction that is unusual in nature and infrequent in occurrence should be reported separately as a ponent of ine:a.After discontinued operations of a segment of a business.b.Before cumulative effect of accounting changes and before discontinued operations of a segment of a business.c.After cumulative effect of accounting changes and before discontinued operations of a segment of a business.d.After cumulative effect of accounting changes and after discontinued operations of a segment of a business.26. Rock Co.39。notPension gain$Foreign currency translation loss120,000Unrealized gain on availableforsale security32,000Revaluation loss from revaluation of intangible assets18,000What amount should the pany report as other prehensive ine as of December 31?a.$55,000b.$137,000c.$99,000d.$17,00029. Which of the following is included in other prehensive ine?a.Foreign currency translation adjustments.b.The difference between the accumulated benefit obligation and the fair value of pension plan assets.c.Unrealized holding gains and losses on trading securities.d.Unrealized holding gains and losses that result from a debt security being transferred into the heldtomaturity category