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shtirl [24]
3 years ago
6

Ames Company determined the following values for its inventory as of December 31: Historical Cost $200,000 Replacement Cost $160

,000 Sales Value $190,000 Cost to Complete and Sell $10,000 Normal Profit Margin $8,000 Fair Value $194,000Under IFRS, what amount should Ames report for inventory at December 31
Business
1 answer:
ser-zykov [4K]3 years ago
8 0

Answer:

Under IFRS, what amount should Ames report for inventory at December 31 at $180,000

Explanation:

Under International Financial Reporting Standards (IFRS) ,the inventory would be reported at the lower of cost and net realizable value.

The original cost of the inventory is $200,000 while its net realizable value is sales value  of $190,000 minus the cost to complete and sell of $10,000 i.e $180,000.

Ultimately ,the inventory would be reported at the NRV of $180,000

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A company sold garden hoses at a reduced price of ​$7.54 and took an​ end-of-season markdown of ​$11.45. What was the original s
Vitek1552 [10]

Answer:

The original selling price would be $ 18.99

Explanation:

Given formula is,

M = S - N

Where,

M = markdown,

S = original selling price,

N = reduced price

Here,

M = $ 11.45, N = $ 7.54,

By substituting the values,

11.45 = S - 7.54

⇒ S = 11.45 + 7.54 = 18.99

Hence, the original selling price of the house is $ 18.99

3 0
3 years ago
When a product spreads through the population, it is called the?
Fiesta28 [93]

The answer is diffusion of innovation. This type of theory or process has the aim of having to influence other people in regards with the ideas that they have formulated in which are new. These ideas are being spread out with the use of innovations.

7 0
3 years ago
Suppose the real risk-free rate is 3.50%, the average future inflation rate is 2.25%, and a maturity premium of 0.10% per year t
podryga [215]

Answer:

5.85%

Explanation:

Suppose the real risk-free rate is 3.50%,  the average future inflation rate is 2.25%, and a maturity premium of 0.10% per year to maturity applies, i.e., MRP = 0.10%(t), where t is the years to maturity.  What rate of return would you expect on a 1-year Treasury security, assuming the pure expectations theory is NOT valid?   Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.

a. 5.75%

B. 5.85%

c. 5.95%

d. 6.05%

e. 6.15%

r = r* + IP + DRP + LP + MRP

r = 3.50% + 2.25% + 0 + 0 + .10% = 5.85%

6 0
3 years ago
A county uses the consumption method in accounting for insurance premium prepayments. At the beginning of the fiscal year, the c
pochemuha

Answer:

Expenditures of $12,000 and a $12,000 prepaid asset

Explanation:

Since only half of the policy has been consumed (or accrued), then half of the premium must debited to expenditures, which is similar to debiting insurance expenses on a private company. Since half of the prepaid insurance asset has been used during this year, the account must be reduced by crediting it (same as recording for a private business).

7 0
3 years ago
A corporation issues for cash $8,000,000 of 20-year, 8% bonds, interest payable semiannually. The amount received for the bonds
stiv31 [10]

Answer: D

Explanation: $8,000,000 was issued (sold) for cash. It has a 20-year maturity rate and interest is paid semiannually, meaning June 30 and December 31.

$8,000,000 x 0.08 = $640,000

$640,000/2 = $320,000

Keep in mind when a corporation issues bond to another entity, that entity has to repay the amount that was issued in bonds, plus the interest. Answer choices A, B, and C are out. The best choice is D which makes absolute sense since 20-year x 2 = 40 payments of $320,000 which gives $12,800,000. That's $4,800,000 in interest that the corporation is receiving for taking the risk of issuing the entity the $8,000,000 bonds for cash. The best choice is D.

Hope this explanation helps.

6 0
3 years ago
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