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Utech Company has income before irregular items of $307,500 for the year ended December 31, 2014. It also has the following items (before considering income taxes): (1) an extraordinary fire loss of $53,000 and (2) a gain of $27,100 from the disposal of a division. Assume all items are subject to income taxes at a 39% tax rate.
Prepare Utech Company's income statement for 2014, beginning with "Income before irregular items."
Allied, Inc. bought a two-year insurance policy on August 1 for $3,600. What is the adjusting journal entry on December 31?
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What entry would you make on December 31, 2013, to recognize these facts?
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