Answer:
The difference is $612
Explanation:
By using the Periodic inventory system Fulbright Corp. calculates its Cost of Sales and Inventory at the end of a certain period. In this case at year end.
FIFO
FIFO assumes that the units to arrive first will be sold first. Meaning inventory will be valued using recent prices.
FIFO inventory = 36 units x $122 = $4,392
LIFO
LIFO assumes that the units to arrive last will be sold first. Meaning that the inventory will be valued using earliest (old) prices.
LIFO inventory = 36 units x $139 = $5,004
Conclusion
Difference = LIFO inventory - FIFO inventory
= $5,004 - $4,392
= $612
If his starting balance is the $225.91
then his balance would be
-131.71
Transnet SOC Ltd is a rail, port, and pipeline company in Johannesburg.
Price: This company is a price maker, therefore, in terms of price, Transnet perfect compitetor is a price taker.
Output: Transnet has the ability to decide the quantity of their output and they have many competitors on this one.
<span>Profit: Transnet might be able to increase their profit but in a competition it would be hard because customers might switch to the competitor. </span>
Answer: $132,000
Explanation:
Oscar's new basis on the building will be the basis of the old building plus any additional investment he added.
This is the because there is no gain on the $140,000 he received because it was an Involuntary Conversion amount and he reinvested it into another building within a period of 2 years.
As there is no gain, the building will retain it's original basis but will add any amount outside the involuntary replacement cost of the building.
The Additional basis will be,
= Cost of building - Insurance
= 142,000 - 140,000
= $2,000
The Basis for the new building is,
= 130,000 + 2,000
= $132,000
