The following information is available for Bailey Company for 2008:
1. On January 2, 2008, Bailey paid property taxes amounting to $60,000 on its plant and equipment for the calendar year 2008. In late March 2008 Bailey made major repairs to its machinery amounting to $66,000. These repairs will benefit the remainder of the calendar year's operations.
2. An inventory loss of $150,000 from market decline occurred in August 2008. Bailey recorded this loss in August 2008 after its June 30 quarterly report was issued. None of this loss had been recovered by the end of 2008.
3. At the end of July 2008, Bailey sold some equipment with a book value of $22,000 for $32,500.

State the dollar amounts that should appear in Bailey Company's March 31, June 30, September 30, and December 31, 2008, quarterly financial statements to report:
A. Property taxes.
B. Major repairs to machinery.
C. Inventory loss from market decline.
D. The gain or loss on sale of equipment.

  • CreatedMarch 13, 2015
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