Advanced Accounting (Hoyle) 13th Edition, Chapter 8, Problem 28

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 form 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