Which one of the following would be classified as an extraordinary
item?
Expropriation of property by a foreign government.
Losses attributed to a labor strike.
Write-down of inventories.
Gains or losses from sales of equipment.
14Multiple Choice Question 122
The following information pertains to Sampson Company. Assume
that all balance sheet amounts represent both average and ending
balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 25,000
Inventory 20,000
Property, plant and equipment 210,000
Total Assets $300,000
Liabilities and Stockholders’ Equity
Current liabilities $ 50,000
Long-term liabilities 90,000
Stockholders’ equity—common 160,000
Total Liabilities and Stockholders’ Equity $300,000