On January 1, 20X2, Harris Inc. paid $40,000 in property taxes on its plant for the calendar year 20X2. In March 20X2, Harris made $120,000 in annual major repairs to its machinery. These repairs will benefit the entire calendar year’s operations. How should these expenses be reflected in Harris’s quarterly income statements?

 

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Three Months Ended March 31, June 30, September 30, December 31, 20X2 20x2 20x2 20X2 a. $ 22,000 b. $46,000 40,000 30,000 $46,000 40,000 30,000 $46,000 40,000 30,000 40,000 C. 70,000 d. 160,000 Three Months Ended March 31, June 30, September 30, December 31, 20X2 20x2 20x2 20X2 a. $ 22,000 b. $46,000 40,000 30,000 $46,000 40,000 30,000 $46,000 40,000 30,000 40,000 C. 70,000 d. 160,000

Answer rating: 100% (QA)

Solution Though H Company paid 120000 as annual repairs to the machinery in the month ... View the full answer