On January 15, 2015, Vancey Company paid property taxes on its factory building
ID: 2902396 • Letter: O
Question
On January 15, 2015, Vancey Company paid property taxes on its factory building for the calendar year 2015 in the amount of $960,000. In the first week of April 2015, Vancey made unanticipated major repairs to its plant equipment at a cost of $2,400,000. These repairs will benefit operations for the remainder of the calendar year. How should these expenses be reflected in Vancey's quarterly income statements? Three Months Ended 3/31/15 6/30/15 9/30/15 12/31/15 $240,000 $1,040,000 $1,040,000 $1,040,000 $240,000 $2,640,000 $240,000 $240,000 $960,000 $1,600,000 $ -0- $ -0- $840,000 $840,000 $840,000 $840,000
Explanation / Answer
$960,000