Inventory loss from market decline

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An inventory loss from market decline of $900,000 occurred in April 2011. CD Company recorded this loss in April 2011 after its March 31, 2011, quarterly report was issued. None of this loss was recovered by the end of the year. How should this loss be reflected in the quarterly income statements of CD Company?

Three months ended (2011):

March 31 June 30 September 30 December 31

A) 0 0 0 $900,000

B) 0 $300,000 $300,000 $300,000

C) 0 $900,000 0 0

D) $225,000 $225,000 $225,000 $225,000

Reference no: EM13145619

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