Wenger Company experienced a $420,000 inventory loss from market decline in April 20X2. The company recorded this loss in April 20X2 after its March 31, 20X2, quarterly report was issued. None of this loss was recovered by the end of the year. How should this loss be reflected in Wenger’s quarterly income statements?

Transcribed Image Text:

Three Months Ended March 31, 20X2 June 30, September 30, December 31, 20X2 20X2 20X2 5 a. $ 0 $ $ 0 $420,000 b. 0 140,000 140,000 140,000 C. 0 420,000 0 0 d. 105.000 105.000 105.000 105.000