Far Corporation had the following transactions during the quarter ended March 31, 2011:
|
Loss on early extinguishment of debt |
$ 70,000 |
|
Payment of fire insurance premium for calendar year 2011 |
100,000 |
What amount should be included in Far’s income statement for the quarter ended March 31, 2011?
|
Extraordinary Loss |
Insurance Expense |
|
|
a |
$70,000 |
$100,000 |
|
b |
$70,000 |
$ 25,000 |
|
c |
$17,500 |
$ 25,000 |
|
d |
0 |
$100,000 |