Padre Company purchases inventory for $70,000 on Mar 19, 20X8 and sells it to Sonny Corporation for $95,000 on May 14, 20X8. Sonny still holds the inventory on December 31, 20X8, and determines that its market value (replacement cost) is $82,000 at that time. Sonny writes the inventory down from $95,000 to its lower market value of $82,000 at the end of the year. Padre owns 75 percent of Sonny.Based on the information given above, by what amount should Sonny write down inventory in its books?
A. $15,000
B. $13,000
C. $16,000
D. $14,000
Answer: B
You might also like to view...
Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called
A. preferred provider plans. B. defined-benefit plans. C. flexible spending accounts. D. cafeteria-style plans. E. cash balance plans.
Devon Manufacturing, Inc The following information is available for Devon Manufacturing for the year ended December 31, 2012: Net income $ 844,200 Net sales 6,809,000 Total assets 5,911,000 Total stockholders' equity 2,575,000 Refer to Devon Manufacturing, Inc DuPont analysis return on equity (ROE) for Devon is:
A) 32.78%. B) 34.51%. C) 35.48%. D) 38.69%.
How do the eight key supply chain processes drive successful process integration?
What will be an ideal response?
Describe the potential benefits and risks of outsourcing customer service activities.
What will be an ideal response?