Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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What is the firm's net capital spending for the year on these accounting question?
hello account tutor solve it
Based on the following information when applying the
lower of cost or market rule, the inventory would be valued
at?[Account general]
Apparel
Selling price: $120
Cost: $90
Replacement cost: $110
Normal gross profit ratio: 25%
a. $108
b. $90
c. $110
d. $115
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- Question: Account ABC LLC manufactures and sells paper envelopes. The stock of envelopes was included in the closing inventory as of December 31, 2005, at a cost of $50 each per pack. During the final audit, the auditors noted that the subsequent sale price for the inventory at January 15, 2006, was $40 each per pack. Furthermore, inquiry reveals that during the physical stock take, a water leakage has created damages to the paper and the glue. Accordingly, in the following week, ABC LLC spent a total of $15 per pack for repairing and reapplying glue to the envelopes. The net realizable value and inventory write-down (loss) amount to: (a) $40 and $10 respectively. (b) $45 and $10 respectively. (c) $25 and $25 respectively. (d) $35 and $25 respectively. (e) $30 and $15 respectively.23arrow_forwardI need answer of this question solution general accountingarrow_forwardI want to correct answer general accountingarrow_forward
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