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olga nikolaevna [1]
3 years ago
13

Based on the following information: Assume that Forrest Company uses the LIFO accounting method. In year X1, Forrest reported th

e following information:
Units Unit Cost Total Cost
Beginning Inventory (1/1/X1) 1,000 10 10,000
Purchases (year X1) 2,000 11 22,000
Year X1 Sales 1,500
Ending Inventory (12/31/X1) 1,500
Based on the above information, Forrest Company will report which of the following amounts for its LIFO Inventory on 12/31/X1?
a. $15,500
b. $16,000
c. $16,500
d. none of the above.
Business
1 answer:
Andru [333]3 years ago
8 0

Answer:

a. $15,500

Explanation:

Based on LIFO, cost of 1500 unit sold will be entirely from the Purchases (year X1). Therefore, we have:

Value of units purchases (year X1) outstanding after sales = (2,000 - 1,500) * $11 = 500 * $11 = $5,500

Therefore, we have

LIFO Inventory on 12/31/X1 = Value of beginning Inventory (1/1/X1) + $5,500 = $10,000 + $5,500 = $15,500.

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Parking spaces in multiunit buildings, water rights, and similar things of value that convey with property are classified as Appurtenances.

<h3>What Is Appurtenance?</h3>

In real estate, an appurtenance is something that is installed in or sits on a property. It is something that is considered a part of the property, is sold with the property, and it is passed on to the new owners.

When we talk about appurtenances we are often talking about things that run with the land. Appurtenance originates from the word 'appertain,' which means to relate to, be appropriate, or applicable.

Before defining appurtenance,

<h3>What is Real Property ?</h3>

In real estate, real property is defined as immovable or fixed property, any property attached to the land and even the land itself. This also includes permanent fixtures within the property, that are not personal property and easily moved.

Some common examples:  

  • Exterior buildings (e.g., barn, shed)
  • a fence.
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  • A shared driveway (with attached easement appurtenant).
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Appurtenances are important to understand as they can have an effect on landlord and tenant relations as well as that between buyer and seller.

Learn more about Easement Appurtenances on:

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