BUSI 2001 Study Guide - Quiz Guide: Gross Profit, Net Income, Retained Earnings

• School: Carleton University
• Department: Business
• Course: BUSI 2001
• Professor: Ouafa Sakka

Document Summary

Solutions to exercise 4-10 (from the textbook) (a) gottlieb corp. Loss on inventory due to decline in net realizable. Items that may be reclassified subsequently to net income or loss: Unrealized gain on fair value through oci investments (net of ,500 income tax) Correction for overstatement of net income in prior period (depreciation error) (net of tax of ,750) Under aspe, other comprehensive income is not recognized. All investments designated as fair value through oci (fv-oci) under ifrs would be accounted for as fair value through net income (fv-ni) under aspe as long as they trade in an active market. Aspe, the unrealized gain on fv-oci investments of ,000 would be included in net income for the year ended december 31, 2014. As well, all previously recognized unrealized gains/(losses) on the related investments would have been recorded in net income and closed to retained earnings in those prior years.