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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.

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On January 1, 2018, Baddour, Inc., issued 10% bonds with a face amount of $168 million. The bonds were priced at $147.2 million
bagirrra123 [75]

Answer:

(A)Balance sheet

Bonds at September 30th

Bonds Payable      168,000,000

Discount on Bonds  (20,152,000)

Interest Payable       12,600,000

Net                          160,448,000

(B) Income Statment

Interest Expense 13,248,000

(C)Cash Flow Statment

Financing

Cash generate for Bonds issued 147,200,000

Explanation:

Jan 1st, 2018 168,000,000 face value

Issed at 147.2M for an effective rate of 12%

Discount of 20.8M

Bonds at September 30th

<em>accrued interest expense:</em> 147,200,000 x 12% x 9/12 = 13,248,000

<em>interest payable: </em>168,000,000 x 10% x 9/12 = 12,600,000

<em>amortization of Discount:</em> 648,000

7 0
3 years ago
A new manager starts his work by talking with each member of his team, getting to know their strengths and weaknesses, and helps
wel

Answer: the correct answer is coaching leadership.

Explanation:

The Coaching Leadership Style is a relatively new and guiding leadership style. The leader has these skills when he is able to develop and improve the performance and competences of his employees. The basis of the Coaching Leadership Style is the dynamic interaction between the leader and the employee.

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3 years ago
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valkas [14]
The answer would be B
7 0
2 years ago
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The following information is taken from the records of Erie Corp.(in thousands) for the year ended on December 31: 2019 2018 Sal
den301095 [7]

Answer:

<u>Favourable Changes:</u>

Sales

Gross Profit

Operating Income

Interest Expense

Net Income

<u>Unfavourable Changes:</u>

Cost Of Sales  

Selling Expenses  

General Expenses

Other Revenue

Income Taxes

Explanation:

Observe Movement from 2018 results to 2019 results

                                        Erie Corp

                   Vertical Analysis of Income Statement

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Sales                                                        1,397                    1,122

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Gross Profit                                               462                      308

<u>Less Operating Expenses</u>

Selling Expenses                                      154                       121

General Expenses                                     88                        77

Operating Income                                   220                       110

<u>Less Non- Operating Expenses</u>

Other Revenue                                            4                          7

Interest Expense                                         2                          9

Income Taxes                                           134                        66

Net Income                                                88                        42

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