What was Allisons adjusted income

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Question - Allison Corporation's current year income from continuing operations before taxes was $1,000,000 before taking the following items into consideration:

Depreciation was understated by $100,000.

A strike by the employees of a supplier resulted in a loss of $200,000. This strike was the first such strike that Allison had encountered.

The inventory at December 31 of the prior year was overstated by $300,000. The inventory at December 31 of the current year was correct.

A flood in Allison's Houston facility destroyed equipment worth $500,000. The facility had just been rebuilt from damages that occurred in a flood in the prior year.

Required - What was Allison's adjusted income from continuing operations before taxes?

Reference no: EM132535009

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