ACC 304 All Assignments ACC 304 All Assignments | Page 169

In 2006, Jarrett Company purchased a tract of land as a possible future
plant site. In January, 2014, valuable sulphur deposits were discovered
on adjoining property and Jarrett Company immediately began
explorations on its property. In December, 2014, after incurring
$800,000 in exploration costs, which were accumulated in an expense
account, Jarrett discovered sulphur deposits appraised at $4,500,000
more than the value of the land. To record the discovery of the
deposits, Jarrett should
The primary IFRS related to property, plant and equipment is found in
Ryan Distribution Co. has determined its December 31, 2014 inventory
on a FIFO basis at $490,000. Information pertaining to that inventory
follows:
LF Corporation, a manufacturer of Mexican foods, contracted in 2014 to
purchase 1,500 pounds of a spice mixture at $5.00 per pound, delivery
to be made in spring of 2015. By 12/31/14, the price per pound of the
spice mixture had dropped to $4.70 per pound. In 2014, LF should
recognize
Plank Co. uses the retail inventory method. The following information is
available for the current year.