Answer:
The amount of $8,707,170 of cash and cash equivalents to be reported on Eastwood Co.
Explanation:
Cash reported December 31,2014 = Commercial savings account + Commercial checking account + Money market fund + Petty cash fund + Commercial paper + Currency and coin on hand
=$698,340 + $830,320 + $5,044,440 + $1,900 + $2,124,020 + $8,150
= $8,707,170
Therefore, The amount of $8,707,170 of cash and cash equivalents to be reported on Eastwood Co.
Answer:
€6 million
Explanation:
As we know that
According to the International Financial Reporting Standards, if the net realizable value of the inventory increases then the written down of reversal value is required
And according to the GAAP, the inventory should be valued at lower of cost or net realizable value
So in the given case, the inventory is purchased at €6 million and now it is estimated value is €7 million so the lower value i.e €6 million should be reported on the balance sheet.
I believe it’s b.
Sorry if it’s wrong I’m not sure
The correct answer is $380 per unit.
The lower-of-cost-or market rule requires that you report the lower value of either the purchase price or current market price of items in inventory. In this case the current market price is lower, so it should be used when calculating the value of inventory.
The answer and explanation to part 1 is given in the attachment.
Note:
Also, The complete part a question is attached.
