Following are the account balances from Browne Company's income statement: Inventory, January 1 . 2014 ............................ $35,000 Purchases ............................................. 35,000 Purchase Returns and Allowances ....................... 2,000 Purchase Discounts .................................... 4,000 Freight-In ............................................ 5,000 Inventory,
December 31 . 2014 .......................... 10,000 Freight-Out ........................................... 6,000 Given this information, the cost of merchandise available for sale during 2014 is
a. $65,000.
b. $59,000.
c. $69,000.
d. $61,000.
C
You might also like to view...
Which of the following is one of the elements of a site's ease of use?
A) Individual pages are clean and not crammed with content. B) The first page is easy to understand. C) Typefaces and font sizes are very readable. D) The site makes good use of color. E) The site has user-centric privacy controls.
There are three main ways to analyze financial statements. Which of the following does NOT represent one of these ways of analyzing financial statements?
A) horizontal analysis B) ratio analysis C) financial statement analysis D) vertical analysis
Which of these actions is applicable under the Uniform Gifts to Minors Act?
A. Gifts of registered securities can be made by merely delivering the securities to a bank trustee. B. Adults can make a gift of money to minors by depositing the money with a bank in an account in the donor's name. C. Adults are prohibited from making gifts of unregistered securities to minors. D. Gifts of unregistered securities can be made by registering the securities in the name of another adult.
At its inception, Peacock Company purchased land for $50,000 and a building for $220,000. After exactly 4 years, it transferred these assets and cash of $75,000 to a newly created subsidiary, Selvick Company, in exchange for 25,000 shares of Selvick's $5 par value stock. Peacock uses straight-line depreciation. When purchased, the building had a useful life of 20 years with no expected salvage value. An appraisal at the time of the transfer revealed that the building has a fair value of $250,000.Based on the information provided, what amount would be reported by Peacock Company as investment in Selvick Company common stock?
A. $250,000 B. $345,000 C. $301,000 D. $125,000