Income statement or retained earnings statement

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Reference no: EM13149887

Scenario:

As udit partner for Grupo and Rijo, you are in charge of reveiwing the classification of unusual items that have occurred during the current year. The following material items have come to your attention.

A construction company, at great, expense prepared a major proposal for a government loan. The loan is not approved.

Instruction:

From the foregoing information, indicate in what section of the income statement or retained earnings statement these items should be classified. Provide a brief rationale for your position.

Reference no: EM13149887

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