Cooper Company Experienced a Permanent Loss Due to an Inventory

Multiple Choice

Cooper Company experienced a permanent loss due to an inventory market decline in June 2010 in the amount of $800, 000.The loss was not recovered by its fiscal year of December 31, 2010.How should this loss have been reflected in Cooper's interim quarterly financial reports? $\begin{array}{llll}&\text { Quarter Ended }\\&\text { March 31 } & \text { June 30 } & \text { September 30 } & \text { December } 31\\I.&\$ 200,000 & \$ 200,000 & \$ 200,000 & \$ 200,000 \\II.&0 & 266,667 & 266,667 & 266,667 \\III.&0 & 800,000 & 0 & 0 \\IV.&0 & 0 & 0 & 800,000\end{array}$

A) I
B) II
C) III
D) IV