The Calvin-Dogwood Partnership owns inventory that was purchased for $90,000, has a current replacement cost of $85,900, and is priced to sell for $125,000 . At what amount should the inventory be recorded in the accounts of the new partnership if Alexis is to be admitted?
a. $129,100
b. $85,900
c. $90,000
d. $125,000
b
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The beginning of management as a field of study dates back to the ______.
A. 17th century B. 18th century C. 19th century D. 20th Century
The drawback of studying absolute amounts reported in financial statements is the problem of differing materiality levels.
Answer the following statement true (T) or false (F)
?Which of the following statements is correct about cash management systems?
A. ?A lockbox system is useful in concentration banking. B. ?A firm that has many divisions operating over a wide geographic area will find that payables centralization offers little benefit. C. ?Disbursement float refers to the value of the checks deposited but the amount is not available in the account. D. ?There are no actions a firm can take to improve its synchronization of cash flows. E. ?Zero-Balance accounts help in managing the cash receipts of a firm.
Speak Corporation, a calendar-year, cash-basis taxpayer, sells packages of foreign language lessons to individuals planning to work overseas. In December 2018, it sold and received payment for $600,000 of 24-month lesson packages to be provided evenly through 2019 and 2020. Speak Corporation will recognize the $600,000 of income
A. half in 2019 and half in 2020. B. all in 2018. C. all in 2019. D. all in 2020.