7) Tongas Company applies revaluation accounting to plant assets with a carrying value of $ 1,600,000, a useful life of 4 years, and no salvage value. Depreciation is calculated on the straight-line basis. At the end of year 1, independent appraisers determine that the asset has a fair value of $ 1,500,000.
The financial statements for year one will include the following information
8) Tongas Company applies revaluation accounting to plant assets with a carrying value of $ 1,600,000, a useful life of 4 years, and no salvage value. Depreciation is calculated on the straight-line basis. At the end of year 1, independent appraisers determine that the asset has a fair value of $ 1,500,000.
9) Which of the following is not an acceptable approach in applying the lower-of-cost-or-market method to inventory?
10) The following data concerning the retail inventory method are |
taken from the financial records of Welch Company. |
Cost |
Retail |
|
Beginning inventory |
$ 147,000 |
$ 210,000 |
Purchases |
672,000 |
960,000 |
Freight-in |
18,000 |
— |
Net markups |
— |
60,000 |
Net markdowns |
— |
42,000 |
Sales |
— |
1,008,000 |
If the foregoing figures are verified and a count of the ending inventory reveals that merchandise actually on hand amounts to $ 108,000 at retail, the business has
11) Muckenthaler Company sells product 2005WSC for $ 40 per unit. The cost of one unit of 2005WSC is $ 36, and the replacement cost is $ 35. The estimated cost to dispose of a unit is $ 8, and the