Would you classify each of the following as transitory or permanent in the entity's financial statements? Explain your reasoning.
a. A warehouse suffers flood damage. The warehouse is on the banks of a river known for periodically overflowing its banks.
b. An airline disposes two older aircraft at a loss. They were replaced by the newest generation of fuel-efficient planes.
c. A clothing chain marks down fall fashions at the end of the season to substantially lower the price so they can be sold.
d. The market price of an important raw material increases by a significant amount.

  • CreatedFebruary 26, 2015
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