The following relate to the income statement of Growth Company for the year ended 2010. What is the beginning inventory?
|
Purchases
|
$180,000
|
|
Purchase returns
|
5,000
|
|
Sales
|
240,000
|
|
Cost of goods sold
|
210,000
|
|
Ending inventory
|
30,000
|
1. $6,000
2. $65,000
3. $50,000
4. $55,000
5. $70,000
Which of the following items are considered to be nonrecurring items?
1. Equity earnings
2. Unusual or infrequent item disclosed separately
3. Discontinued operations
4. Extraordinary item
5. Cumulative effect of change in accounting principle.