56. Harper Inc. incurred an inventory loss from market decline of P840,000 on June 30, 2019. What amount of the inventory loss should be recognized in the quarterly income statement for the three months ended June 30, 2019? a. 210,000 b. 280,000 c. 420,000 d. 840,000

56. Harper Inc. incurred an inventory loss from market decline of P840,000 on June 30, 2019. What amount of the inventory loss should be recognized in the quarterly income statement for the three months ended June 30, 2019? a. 210,000 b. 280,000 c. 420,000 d. 840,000

Name: 56. Harper Inc. incurred an inventory loss from market decline of P84
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: 56. Harper Inc. incurred an inventory loss from market decline of P840,000 on June 30, 2019. Whatamount of the inventory loss should be recognized in the quarterly income statement for the threemonths ended June 30, 2019?a. 210,000b. 280,000c. 420,0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

3. How much is the cumulative effect of this change that should be reported in the income statement for the year ended December 31, 2021? On December 31, 2021, BLACK MAMBA Company appropriately changed its inventory valuation method to average cost method from FIFO for financial statement and income tax purposes. The change will result in a $180,000 increase in the beginning inventory at January 1, 2021. Assume an income tax rate of 30%. Your answer
On January 1, 2023, Cullumber Ltd. changed its inventory valuation method from weighted-average cost to FIFO for financial statement and income tax purposes, to make its reporting as reliable and more relevant. The change resulted in a $914000 increase in the beginning inventory at January 1, 2023. Assume a 25% income tax rate. The cumulative effect of this accounting change reported for the year ended December 31, 2023 is Ⓒ $228500. Ⓒ$914000. $0. $685500.
ABC Company experienced a decline in the value of its inventory in 2020 which resulted in a write-down from a cost of P2.400,000 to net realizable value of P1,650,000. The entity's practice is to use the allowance method in recording necessary adjustments. In 2021, market conditions have improved and on December 31, 2021, the inventory had a cost of P4,200,000 and net realizable value of 3,750.000. Compute for the amount of gain on reversal of inventory write-down on December 31,2021.
2.2. During 2021, Gamma Ltd discovered that some of their products sold during 2020 were incorrectly included in inventory as 31 December 2020 at R6 500. Assume a tax rate of 30%. Assume that the prior period error effect is considered to be material. Gamma Ltd.'s accounting records are as follows: 2021 Sales Cost of sales Profit before tax 208 000 (173 500) 35 000 (10 500) 24 500 2020 147 000 (107 000) 40 000 (12 000) 28 000 Taxation Profit The profit for 2021 includes R13 500 for the error made in opening inventory Additional information: 2020 opening retained earnings was R40 000 and closing retained earnings was R68 000. Gamma's income tax rate was 30% in 2021 as well as in 2020. It had no other income or expenses. Gamma Ltd has R10 000 of share capital throughout 2020 and 2021, as well as retained earnings. REQUIRED: Disclose the effect of the error in the financial statements for the year ended 31 December 2021
On January 1, 2023 , Linda Corp. changed from the average cost to the dollar value LIFO method for accounting for inventory. The change results in a decrease in ending inventory of $45,497,000 for the year. How should the effect of this change be reported by Linda Corp. in 2023? (RE& CF 1) As an increase to beginning RE of $ 45,497,000 As a decrease to beginning RE of $45,497,000 As an increase to net income of $45,497,000 As a decrease to net income of $45,497,000
During 2022, Emerald Inc. decided to change from FIFO method of inventory valuation to the weighted average method. January 1 inventory under FIFO 7,100,000 January 1 inventory under weighted average 7,700,000 December 31 inventory under FIFO 7,900,000 December 31inventory under weighted average 8,300,000 In the statement of retained earnings for 2022, what amount should be reported as the pretax cumulative effect of this accounting change? (A) 1,000,000 deduction (B) 1,000,000 addition C 600,000 deduction D 600,000 addition
6. On January 1, 2011, Folk Company changed from the average cost method to the FIFO method to account for its inventory. Ending inventory for each method was given below. Folk Company accrues tax expense on December 31 of each year and pays the tax in April of the following year. The income tax rate is 30%. What is the net income to be reported in 2011 after the change to the FIFO inventory method? a. 1,610,000 b. 2,300,000 c. 1,750,000 d. 1,890,000
10.
RR
On January 2, 2022, TITAN Company changed its inventory cost flow method to FIFO from average for both financial statements and income tax reporting purposes. The change resulted in a P800,000 increase in the beginning inventory on January 1, 2022. Ignoring income tax, the accounting change should preferably be reported by the company in its year 2022 as? A. ₱ 800,000 as debit adjustment to the beginning balance of retained earnings B. ₱ 800,000 credit to the income statement C. ₱ 800,000 debit to the income statement D. ₱ 800,000 as credit adjustment to the beginning balance of retained earnings
A 105.
11