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The following are partial income statement account balances taken from the December 31, 2009, year-end trial balance of White and Sons, Inc.:
Restructuring costs
300,000
Interest revenue
40,000
Loss from earthquake (unusual and infrequent)
400,000
Loss on sale of investments
50,000
Income tax expense has not yet been accrued. The income tax rate is 40%.
Prepare the lower portion of the 2009 income statement beginning with $850,000 income before income taxes and extraordinary item. Include appropriate basic EPS disclosures. The company had 100,000 shares of common stock outstanding throughout the year.
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Identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, accrued revenue) is needed in each situation, at December 31, 2010.
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