Answer:
c. $155.
Explanation:
Kimzey Medical Supply's merchandise inventory:
Surgical equip. Surgical supplies Rehab equip. Rehab supplies
Selling price $335 $195 $415 $240
Cost $245 $165 $325 $237
Replacement $315 <u>$155</u> $310 $233
cost
Net RV $275 $175 $375 $200
If we apply the lower of cost or market rule for determining the value of surgical equipment, its value would be: $155 because the replacement cost (or market price) is lower than the historical cost or the net realizable value.
When we use the lower of cost or market rule, we should value our inventory at the lowest value between original purchase cost, replacement (or market) price or net realizable value.
Answer:
See explanation section.
Explanation:
See the images to the answer.
EVEN I KNOW THIS ONE. A MONTHLY PAYMENTTT
The answer is A. Hope I could help.
Answer:
B. Historical cost principle
Explanation:
In accounting, historical cost principle indicates that a business or an organization must record and account for both assets and liabilities at their purchase or buying price. In points that during bookkeeping, while recording the worth of an assets, the purchase price used in buying it must be recorded. Here, Lisa bought the building for $35000 but recorded $50000 because she believes that to be the real value. By doing so, lisa has violated the historical cost principle concept.
