95. Integrated Corporation manufactures and sells cotton clothing: T-shirts, sweatshirts and socks. They manufacture the products in their two facilities in Quebec and then sell them in their own...

95. Integrated Corporation manufactures and sells cotton clothing: T-shirts, sweatshirts and socks. They manufacture the products in their two facilities in Quebec and then sell them in their own retail outlets, "Cotton Plus," or to other retailers. They also have the facilities to print designs and logos on the shirts. During 2013 they decided to close both manufacturing facilities and source the products from China. They will still continue to print the shirts and sell to other retailers and in their own stores.


A) Explain how their decision to close the manufacturing facilities will affect the 2013 financial statements.
B) How does the presentation you described in A) assist users of the financial statements?
C) Assume the facilities are successfully closed in 2014. What is the impact on the 2014 financial statements?

96. Indicate whether the following items would be reported as an operating cost or an unusual item in Kelly Corporation's income statement. If it is not unusual, state how the item should be recorded in the income statement.


A) Loss attributable to labour strike.
B) Loss on sale of mining equipment.
C) Gain on the disposition of the company's retail operations.
D) Loss from sale of FVTOCI securities.
E) Expropriation of property by a foreign government.