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Anon25 [30]
3 years ago
8

The original cost of an inventory item is below both replacement cost and net realizable value. The net realizable value less no

rmal profit margin is below the original cost.Under the lower of cost or market method, the inventory item should be valued atA. Replacement cost.B. Net realizable value.C. Net realizable value less normal profit margin.D. Original cost.
Business
1 answer:
kati45 [8]3 years ago
8 0

Answer:

B. Net realizable value.

Explanation:

Given that the net realizable value less normal profit margin is below the original cost.

Inventory is initially recognized at the cost however subsequent measurement requires that it be valued at the lower of cost or the net realizable value (NRV).

In other words Inventory will cannot be carried at a value higher than the NRV.

The right answer is B. Net realizable value.

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Fogel Co. has $4,000,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value co
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The total unamortized bond premium at the date of conversion was $280,000. Fogel should record, as a result of this conversion, a  <span>credit of $217,600 to Paid-in Capital in Excess of Par. Thee answer is A. 

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3 years ago
Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary pol
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left as well as the contractionary monetary policy, then bring about the

increase of interest rate as well as reducing equilibrium quantity of money.

Explanation:

Liquidity Preference model can be regarded as a model gives suggestions about investor and interest rate, the model entails that high interest rate as well as premium on securities associated with long-term maturities with higher risk should be demanded by investors, reason behind this suggestions is that most investors will always go for cash as well as available highly liquid holdings, all things been equal. It should be noted that Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary policy by shifting the supply of money to the left as well as the contractionary monetary policy, then bring about the increase of interest rate as well as reducing equilibrium quantity of money.

3 0
3 years ago
Imagine that after completing your economics course (you get an A, of course) you are at a family gathering. Your grandmother as
Maksim231197 [3]

Answer:

$16,875

Explanation:

The amount received per year is $15,000 and the CPI increased from 144 to 162

Inflation rate = (New CPI - Old CPI)/Old CPI * 100

Inflation rate = 162-144/144 * 100

Inflation rate = 0.125

Inflation rate = 12.5%

Amount received = $15,000 * 12.5% = $1,875

==> $15,000 + $1,875 = $16,875

So, Grandmother will receive $16,875

3 0
3 years ago
Business management​
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Business Management Tactics are characterized as exercises that observe the business models that were distinguished in the organization's approaches. They put into impact business assignments and plans so they can meet the objectives that have been organized.

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3 years ago
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