Quèstion 1Answer the following 2 questions:Question1:Ashraf Company began operations in 2020 and determined its ending inventory at cost and at NRV on December 31 , 2020, and December 31, 2021. This information is presented below.CostNet Realizable Value12/31/2020$120,000$110,00012/31/2021230,000265,000What is the effect of applying LCNRV (lower of cost or net realizable value) on income for 20212a- No effectb- Increases for $10,000C- Increases for $35,000d- Increases for $20,000Question 2:Given the historical cost of the product, Z is $139, the selling price of product Z is $190, costs to sell product Z are $11, and the cost to complete product Z is $20, what is the amount that should be used tovalue the inventory under IIAS( 2)? va.$170.b. $150.C.$159.11:33 AMC42037°C Haze8/28/202e to searchDELLDeletePrtScrInsertF12F10F11F9F7F8F6F5F3Backspace&8 A

Name: Quèstion 1Answer the following 2 questions:Question1:Ashraf Company b
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Description: Quèstion 1Answer the following 2 questions:Question1:Ashraf Company began operations in 2020 and determined its ending inventory at cost and at NRV on December 31 , 2020, and December 31, 2021. This information is presented below.CostNet Realizable

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Answer the following 2 questions: Question1: Ashraf Company began operations in 2020 and determined its ending inventory at cost and at NRV on December 31, 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/2020 $120,000 $110,000 12/31/2021 230,000 265,000 What is the effect of applying LCNRV (lower of cost or net realizable value) on income for 2021? v a- No effect b- Increases for $10,000 C- Increases for $35,000 d- Increases for $20,000 11 and the cost to complete product Z is $20, what is the amount that should be

Answer the following 2 questions: Question1: Ashraf Company began operations in 2020 and determined its ending inventory at cost and at NRV on December 31, 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/2020 $120,000 $110,000 12/31/2021 230,000 265,000 What is the effect of applying LCNRV (lower of cost or net realizable value) on income for 2021? v a- No effect b- Increases for $10,000 C- Increases for $35,000 d- Increases for $20,000 11 and the cost to complete product Z is $20, what is the amount that should be

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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?