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sales were $1,800,000. December 31 inventory at year-end prices was
$227,700, and the price index was 110.
What is Hay Company’s gross profit
16. In the double-extension method, the value of the units in
inventory is extended at:
17. Web World began using dollar-value LIFO for costing its
inventory last year. The base year layer consists of $400,000.
Assuming the current inventory at end of year prices equals $552,000
and the index for the current year is 1.10, what is the ending
inventory using dollar-value LIFO?
18.
RF Company had January 1 inventory of $200,000 when it adopted
dollar-value LIFO. During the year, purchases were $1,200,000 and
sales were $2,000,000. December 31 inventory at year-end prices was
$286,720, and the price index was 112.
What is RF Company’s gross profit?
19. Cotton Hotel Corporation recently purchased Emporia Hotel and
the land on which it is located with the plan to tear down the Emporia
Hotel and build a new luxury hotel on the site. The cost of the
Emporia Hotel should be
20. Ecker Company purchased a new machine on May 1, 2006 for
$352,000. At the time of acquisition, the machine was estimated to
have a useful life of ten years and an estimated salvage value of
$16,000. The company has recorded monthly depreciation using the
straight-line method. On March 1, 2015, the machine was sold for
$48,000. What should be the loss recognized from the sale of the
machine?
21. Under IFRS, Sampson Company, who has a non-current asset
which has been classified as held-for-sale, should
22. The cost of land does not include
23. Which of the following is not a condition that must be satisfied
before interest capitalization can begin on a qualifying asset?
24. Which of the following is not a major characteristic of a plant
asset?