Answer
a. The investment securities-related gains are put under “Other revenues and gains.”
b. The bonus comes after the net income; it is not treated as an expense because it is related to noncontrolling interest.
c. The error attributed to additional depreciation is corrected by being treated through a previous period adjustment such that the previous period’s income is restated to reflect the additional amount of depreciation.
d. The rent is put under the "Other revenues and gains" category in the income statement.
e. The cash incurred on the settlement of the suit is put under “Other expenses and losses.”
f.The amount related to allowance for doubtful debts should be deducted for current and prospective years.
Work Step by Step
a. The investment securities-related gains are put under “Other revenues and gains.”
b. The bonus comes after the net income; it is not treated as an expense because it is related to noncontrolling interest.
c. The error attributed to additional depreciation is corrected by being treated through a previous period adjustment such that the previous period’s income is restated to reflect the additional amount of depreciation.
d. The rent is put under the "Other revenues and gains" category in the income statement.
e. The cash incurred on the settlement of the suit is put under “Other expenses and losses.”
f.The amount related to allowance for doubtful debts should be deducted for current and prospective years.
