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Maksim231197 [3]
3 years ago
5

Congress passes a law that regulates the amount of lettuce that can be grown on a farm. Milton is a farmer who grows lettuce. He

grows more lettuce than is allowed under the new law and is fined. He sues to have the law declared unconstitutional, arguing that he grew the allowed amount for sale and then grew some extra for his family to use in personal consumption. The federal courts are likely to:a. declare the law constitutional because Milton's actions substantially affect interstate commerce.b. declare the law unconstitutional because Milton's actions do not impact interstate commerce in a any way.c. declare the law constitutional because Milton's actions impact interstate commerce in a small way.
Business
1 answer:
Yuliya22 [10]3 years ago
6 0

Answer:

The answer is: A) Declare the law constitutional because Milton's actions substantially affect interstate commerce.

Explanation:

The Commerce Clause, Article I, Section 8, Clause 3 of the Constitution of the United States:

[The Congress shall have Power] To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.

Congress can enact laws that regulate interstate commerce, and this law is an example of one of them. It doesn't matter if Milton's action only affect commerce in a very small way, the law is still constitutional.

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Answer:

Entry to record adjustment:

COGS Dr $9.4m

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Explanation:

The question relates to a change in accounting policy. According to IAS 8 (changes in accounting policy and estimate), a change in accounting policy is to be reflected retrospectively and prospectively, which means any changes should be implemented by bringing changes in the past records. Since CPS company has been using FIFO method, the inventory has been overstated in the financial statements. A shift to AVCO has resulted in a decrease in inventory value.

The value of inventory has to be reduced as a result of change in accounting policy (i.e $38m - $28.6m). This is the closing inventory so a reduction in the value of closing inventory results in an increase in cost of goods sold (COGS), therefore, the adjusting entry will be aimed at reducing inventory and increasing cost of goods sold, see as follows:

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COGS Dr $9.4m

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Raed more on the uniform commercial code here: brainly.com/question/15980446

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