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Ainat [17]
3 years ago
8

The General Fund reported a beginning balance of inventory of materials and supplies of $122,000. The ending balance was $150,00

0. Supplies received during the year (purchases) totaled $600,000. The county uses the purchases method. The General Fund should report expenditures for materials and supplies for the year of a. $450,000. b. $572,000. c. $600,000. d. $628,000.
Business
1 answer:
Gemiola [76]3 years ago
4 0

Answer:

c. $600,000

Explanation:

Under the purchase methods of accounting, a business records assets at the fair market value. It is the price that the business paid to acquire the assets.

For the general fund, the cost incurred in acquiring the purchases is $600,000.  This is the figure that will be recorded and reported in books.  The purchase method is contrasted with the consumption method.

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Answer:

$7,120

Explanation:

Given that,

Assets = $85,900

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Fair value of assets = $90,500

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Net assets:

= Fair value of assets - Fair value of its liabilities

= $90,500 - $13,500

= $77,000

Goodwill = Purchase consideration - Net assets

               = $84,120 - $77,000

               = $7,120

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Answer:

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Explanation:

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