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Anuta_ua [19.1K]
3 years ago
12

An art gallery has two vases that have not sold for more than two years. Each vase cost $130 and originally retailed for $250. E

ach vase has a current replacement cost of $90. What will the art gallery report as a loss for the year?
A. $80
B. $180
C. $500
D. $260
Business
1 answer:
Liula [17]3 years ago
6 0

Answer: Option (A)

Explanation:

Under the rules of books as per the US GAAP,  we tend to record all the inventory at the cost or the NRV i.e. Net realizable value whichever is less. Here in this particular case,

Cost for each unit = $130

NRV = $90.

Thus inventory will be recorded at $90 each. This means that we've incurred a loss of $40 each ($130 - $90 = $40).

<em>Accordingly, total loss = $40 \times 2 = $80</em>

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3 years ago
The wireone company manufactures high-quality coated electrical wire in two departments, weaving and coating. materials are intr
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<h2><u>Answer:</u></h2>

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4 years ago
The process of when a product is recycled back into almost the same product, is called?
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3 years ago
Zolezzi Inc. is preparing its cash budget for March. The budgeted beginning cash balance is $26,000. Budgeted cash receipts tota
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Answer:

Calculations below

Explanation:

beginning cash balance $    26,000

Add; Cash receipts         $ 105,000

Total cash available         $ 131,000

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5 0
4 years ago
Read 2 more answers
Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s recor
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Answer:

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adds: Carmen Camry Investment    101,4000

Net Income                                               5,410

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Explanation:

We have to calculae the net income

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office                           5,200

rent expense                   9,500

salaries expense           5,560

telephone expense      820

miscellaneous expenses    470

Total Expenses         21,550

Net Income                            5,410

Then we do the equity stamtent:

beginning + investment + net income - withdrawals = ending

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Net Income                                               5,410

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Carmen Camry capital account at the end of August 31th  100,860

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4 years ago
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