Question: Rouge Company's $250,000 net income for the quarter ended September 30 included the following after-tax items: A $20,000 cumulative effect loss resulting from a

Rouge Company's $250,000 net income for the quarter ended September 30 included the following after-tax items:
∙ A $20,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1.
∙ $0 of the $60,000 annual property taxes paid on February 1.
For the quarter ended September 30, the amount of net income that Rouge should report is
a. $235,000
b. $250,000
c. $255,000
d. $270,000

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