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At Hall Company, events and transactions during 2007 included the following.The tax rate for all items is 30%.
(1) Depreciation for 2005 was found to be understated by $30,000.
(2) A strike by the employees of a supplier resulted in a loss of $25,000.
(3) The inventory at December 31, 2005 was overstated by $40,000.
(4) A flood destroyed a building that had a book value of $500,000.Floods are very uncommon in that area.
-The effect of these events and transactions on 2007 net income net of tax would be
A)$17,500.
B)$367,500.
C)$388,500.
D)$416,500.

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The Answer of Use the following information for questions
At Hall Company, events and transactions during 2007 included the following.The tax rate for all items is 30%.
(1) Depreciation for 2005 was found to be understated by $30,000.
(2) A strike by the employees of a supplier resulted in a loss of $25,000.
(3) The inventory at December 31, 2005 was overstated by $40,000.
(4) A flood destroyed a building that had a book value of $500,000.Floods are very uncommon in that area.
-The effect of these events and transactions on 2007 net income net of tax would be
A)$17,500.
B)$367,500.
C)$388,500.
D)$416,500.

Use the Following Information for Questions