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Question(s) / Instruction(s):

Benjamin Company uses iGAAP, while Iris, Inc. uses U.S. GAAP, for their external financial reporting. On January 16, 2011, both companies settled lawsuits relating to industrial accidents that occurred in 2009. Benjamin Company paid $450,000 and Iris, Inc. paid $230,000. Assuming that no accrual had been previously made, what amount of loss should be reported on the income statement for the year ended December 31, 2010 for each company?

                 Benjamin Company       Iris, Inc.

a.                        $ -0-                  $ -0-

b.                     $450,000          $230,000

c.                        $ -0-              $230,000

d.                     $450,000              $ -0-

a.            c

b.            b

c.             d

d.            a

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