Reference no: EM13378980

1- The write -off inventory due to obsolence.

2- Discovery that depreciation expenses were omitted by accident from 2010's income statement.

3- The useful lives of all machinery were changed from eight to five years.

4- The depreciation method used for all equipment was changed from the declining-balance to the straight-line method.

5- Ten million dollars face value of bonds payable were repurchased (paid off) prior to maturity resulting in a material loss of $ 500,000.The Company considers the event unusual and infrequent.

6- Restructuring costs were incurred.

7- The Maryland Company, a manufacturer of shoes, sold all of its retail outlets. It will continue to manufacture and sell its shoes to other retailers. A loss was incurred in the disposition of the retail stores. The retail stores are considered components of the entity.

8- The inventory costing method was changed from FIFO to average cost.

Required:

For each situation, identify the appropriate reporting treatment from the list below( consider each event to be material):

a- As an extraordinary item.

b- As an unusual of infrequent gain or loss.

c- As prior period adjustment.

d- As a change in accounting principle.

e- As a discontinued operation.

f- As a change in accounting estimate.

g- As a change in accounting estimate achieved by a change in accounting principle.