For each of the following events, indicate whether the item would qualify as an extraordinary ite

For each of the following events, indicate whether the item would qualify as an extraordinary item in the determination of income as applied in current practice.

a. A major company plant is destroyed by an unexpected earthquake.

b. Company citrus groves are completely destroyed by frost. A frost of this magnitude occurs about once in five years.

c. Sales of the company’s product have been reduced because of the introduction of a superior product by a competitor.

d. The company sells land that it held for many years, recognizing a large gain. The company is in the manufacturing business, and this was the company’s only investment in land.

e. The company’s current income taxes are reduced because of the carry forward of losses from previous years.

 

 

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