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Cloud [144]
3 years ago
14

XYZ Company bought real estate properties in Boston 50 years ago for $30,000. In 2020, a real estate appraiser inspects the prop

erties and concludes that their expected market value is $2 million. The company has been using historical accounting principles for the last 50 years. A newly appointed financial manager recommends the use of fair value accounting for the value of the properties. Discuss the difference between the two approaches. Do you agree with the financial manager? Why or why not?​
Business
1 answer:
madreJ [45]3 years ago
6 0

Answer:

XYZ Company bought real estate properties in Boston 50 years ago for $30,000. In 2020, a real estate appraiser inspects the properties and concludes that their expected market value is $2 million. The company has been using historical accounting principles for the last 50 years.

Explanation:

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Which inventory costing method results in the lowest net income during a period of rising inventory​ costs?.
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The application of LIFO will produce the lowest net income and the greatest estimated cost of goods sold among the three options during periods of inflation.

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LIFO is the inventory cost flow method that yields the lowest income tax liability. A form of inventory cost flow mechanism called last-in-first-out (LIFO) operates under the presumption that the last item acquired will be the first item to be sold.

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