Answer:
The correct answer is letter "A": Merchandise Inventory.
Explanation:
Lower-of-cost-or-market value is a strategy by which the costs of inventory on the company's Balance Sheet is reported at historical value -purchase cost- or market value, whatever it is lower. The lower-of-cost-or-market approach considers the value of inventory can change, meaning it can increase but it can decrease as well. For both purposes, the lower-of-cost-or-market value can be used. This technique follows the Generally Accepted Accounting Principles (GAAP).
Therefore, <em>merchandise inventory, which can fluctuate in price during a period, is reported using the lower-of-cost-or-market value method.</em>
Answer:
Bell inc should report $980,000 as the total amount of inventory at the end of the year.
Explanation:
Given information -
Inventory that were on hands - $830,000
Inventory that was in transit - $60,000
Inventory that was out on consignment - $90,000
Here for taking out the total inventory all of the given above items would be added .
Inventory that was in transit would be added because these f.o.b. goods would be considered transferred from seller to buyer as soon as they are shipped, so it doesn't matter if they're received two days after the inventory count , they will be added.
Goods which are sent on consignment would also be added because goods would remain in the name of consignor ( Bell inc ) until they're sold by consignee ( an agent who has been hired by Bell inc to sell its goods )
Inventory at end of year - $830,000 + $60,000 + $90,000
= $980,000
Answer:
One company pays 100%, the other re-reimburses 50%
Explanation:
If an environmental assessment found that the two companies share joint and several liability for a hazardous materials cleanup.
What could happen if the two of them don't agree to cooperate in the cleanup is that one of the companies will eventually settle the costs fully while the other party will have to reimburse the party that pays, 50%.
The paying company could make claims because the environmental impact assessment has already found both companies jointly liable. hence each company ought to jointly share the costs
Answer:
C. the portion of its marginal cost curve that lies above its average variable cost curve.
Explanation:
It follows the short-run supply curve of the firm is portion of its marginal cost curve which is above the average variable cost curve.
Answer:
Jimmy must pay federal income taxes for the $500 earned in dividends during last year = $500 x 28% = $140
Since interest earned on federal securities are not taxed by state or local governments, there is no state tax liability.
Jimmy's total taxes due from dividends earned = $140
