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.
Cost
Retail Beginning inventory
$ 234,000
$ 366,000 Purchases
885,000