An inventory loss from market value declines of $200, 000 occurred in August 2010.Marco Sales Company recorded this loss in August after its March 31 and June 30 interim reports were issued.None of this loss was recovered by the end of the year.How should this loss be reflected in Marco's quarterly income statements? $\text{ Three Months Ended }$
$\begin{array}{llllc}& 3/31& 6/30& 9/30& 12/31\\ \text{ I. }& -& -& \$200,000& -\\ \text{ II. }& -& -& 100,000& \$100,000\\ \text{ III. }& \$50,000& \$50,000& 50,000& 50,000\\ \text{ IV. }& --& --& --& 200,000\end{array}$

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

Inventory Loss

A decrease in the quantity or value of inventory due to factors like theft, spoilage, or obsolescence.

Quarterly Income Statements

Quarterly income statements are financial reports that outline a company's revenues, expenses, and profits over a three-month period, showing its financial performance.

Fiscal Year

A one-year period used for financial reporting and budgeting that doesn't necessarily align with the calendar year, varying from one organization to another.