indicate where the following items would ordinarily appear 248494

Indicate where the following items would ordinarily appear on the financial statements of Aleppo, Inc. for the year 2004.

(a) The service life of certain equipment was changed from 8 to 5 years. If a 5-year life had been used previously, additional depreciation of $425,000 would have been charged.

(b) In 2004 a flood destroyed a warehouse that had a book value of $1,600,000. Floods are rare in this locality.

(c) In 2004 the company wrote off $1,000,000 of inventory that was considered obsolete.

(d) An income tax refund related to the 2001 tax year was received.

(e) In 2001, a supply warehouse with an expected useful life of 7 years was erroneously expensed.

(f) Aleppo, Inc. changed its depreciation from double declining to straight-line on machinery in 2004. The cumulative effect of the change was $925,000 (net of tax).

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