1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Drupady [299]
3 years ago
9

Feather Company's inventory is recorded at its historical cost of $100,000. The replacement cost currently is $95,000; estimated

selling price $102,000; estimated selling cost is $5,000; normal profit is $10,000. The estimated net realizable value of the inventory is:________.
a- $100,000
b- $97,000
c- $87,000
d- $102,000
Business
2 answers:
Alisiya [41]3 years ago
6 0

Answer:

Option B. $97,000

Explanation:

The International Accounting Standard IAS 2 Inventories says that the asset must recorded at lower of:

  • Fair Market Value less cost to sell (Net realizable Value)
  • Historic Cost

Here

Cost is $100,000

Fair value less cost to sell = $102,000 - $5,000 = $97,000

Here the lower value is $97,000 so the right answer is option B.

Liula [17]3 years ago
5 0

Answer:

B. $97000

Explanation:

Given that

Estimated selling price = 102000

Estimated selling cost = 5000

Recall that

The net realizable value which is NRV

= Estimated selling price - estimated selling cost

Thus,

NRV = 102,000 - 5000

= 97000

Therefore, the estimated net realizable value is $97000.

Note, the other parameters listed are not used in estimating NRV.

You might be interested in
The story of Clarence Saunders is both inspirational and a cautionary tale. What did he do
777dan777 [17]

Answer

Clarence Saunders invented self-service shopping, when he opened a grocery store in Memphis, Tennessee on 6 September 1916, under the whimsical name Piggly Wiggly.

Explanation:

3 0
2 years ago
According to Redpath and Greg Urban, what is the threshold amount for determing if a substantial basis adjusment is mandatory?
Nataly_w [17]

Answer: According to Ian Redpath and Greg Urban, the threshold amount required for conclusively stating whether a substantial basis adjustment is mandatory is $250,000. The amount required is $250,000 in order for one to  know whether they are in need for a substantial basis reduction or maybe not. It's required when the amount indeed exceeds $250,000.

5 0
3 years ago
Read 2 more answers
Which of the following would most likely suffer the least from the costs of​ inflation?
Arturiano [62]

Answer:

B. Persons on fixed incomes.

Explanation:

Inflation is a general increase in prices and fall in the purchasing value of money, therefore, a person with a fixed income will not be affected.

8 0
3 years ago
Scout Company sold $15.000 of merchandise in September with a three-month warranty. The cost to repair defects under warranty is
chubhunter [2.5K]

Answer: debit to Product Warranty Expense for $750

Explanation: 5% of $15000 =

5 ÷ 100 × $15000 is $750.

This is an expense and so will be a debit.

8 0
3 years ago
There are two universities, A and B, in a city. Tuition rises at University A and, as a result, the demand for attending Univers
LenaWriter [7]

Answer:

Substitutes

Explanation:

The education services at the two universities are substitutes to each other. The cross price elasticity of substitute goods is positive which indicates that as the price of one good increases then as a result the demand for other good increases and if the price of one good decreases then as a result the demand for other good decreases.

Now, if there is an increase in the tuition fees at University A, hence, this will increase the price of educational services at University A. Therefore, this will lead to an increase in the demand for educational services at University B.

4 0
3 years ago
Other questions:
  • 6. Assume that as of August 1, 3,000 units of flat panel displays have been produced and sold during the current year. Analysis
    12·1 answer
  • Which spreadsheet function is used to conduct a logical test to see if the conditions of a given expression can be met? A. Round
    11·2 answers
  • Midstate University is trying to decide whether to allow 100 more students into the university. Tuition is $5000 per year. The c
    8·1 answer
  • You are an industry You are an industry analyst that specializes in an industry where the market inverse demand is P = 200 - 5Q.
    10·1 answer
  • 6.3) Annie Lennox recently took over a cleaning supply store. Her predecessor always ordered carpet shampoo in quantities of 100
    11·1 answer
  • Trompenaars found that a(n) _____ organizational culture is common in countries such as Turkey, Pakistan, Venezuela, China, Hong
    14·1 answer
  • Boeing's new 787 Dreamliner:
    5·1 answer
  • What is the primary danger during the first 3-5 minutes if you are suddenly immersed in cold water?
    6·1 answer
  • A. decide tenure of the loan
    5·2 answers
  • Special hotel accounts for a company that has established credit with a hotel are called?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!