. Discuss the appropriate treatment in the financial statements of each of the following. a. Gain on sale of investment securities. b. A profit-sharing bonus to employees computed as a percentage of net income. c. Additional depreciation on factory machinery because of an error in computing depreciation for the previous year. d. Rent received from subletting a portion of the office space. e. A patent infringement suit, brought 2 years ago against the company by another company, was settled this year by a cash payment of $725,000. f. A reduction in the Allowance for Doubtful Accounts balance because the account appears to be considerably in excess of the probable loss from uncollectible receivables.
. Discuss the appropriate treatment in the financial statements of each of the following.
a. Gain on sale of investment securities.
b. A profit-sharing bonus to employees computed as a percentage of net income.
c. Additional
d. Rent received from subletting a portion of the office space.
e. A patent infringement suit, brought 2 years ago against the company by another company, was settled this year by a cash payment of $725,000.
f. A reduction in the Allowance for Doubtful Accounts balance because the account appears to be considerably in excess of the probable loss from uncollectible receivables.
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