a. 520,000 and 65,000 respectivelyb. 30,400 and 13,000 respectivelyc. 65,000 and 81,250 respectivelyd. 13,000 and 16,250 respectively Baelfire Corporation owns an 80% interest in Sheriff Corporation acquired several years ago.Sheriff regularly sells merchandise to its parent at 125% of Sheriff's cost. Gross profit data ofBaelfire and Sheriff for the year 2020 are as follows:BaelfireP650,000SheriffSales .P520,000Cost of goods soldGross profit .520,000416,000P 130,000P104,000During 2020, Baelfire purchases inventory items from Sheriff at a transfer price ofP260,000. Baelfire's December 31, 2019 and 2020 inventories included goods acquired fromSheriff of P65,000 and P81,250, respectively.The Unrealized profits in the year-end 2019 and 2020 inventories were:

Unrealized profit is the part of profit which is not realized till the end of the accounting year.…

Baelfire Corporation owns an 80% interest in Sheriff Corporation acquired several years ago. Sheriff regularly sells merchandise to its parent at 125% of Sheriff's cost. Gross profit data of Baelfire and Sheriff for the year 2020 are as follows: Baelfire P650,000 Sheriff P520,000 416,000 P104,000 Sales . Cost of goods sold . Gross profit . 520,000 P 130,000 During 2020, Baelfire purchases inventory items from Sheriff at a transfer price of P260,000. Baelfire's December 31, 2019 and 2020 inventories included goods acquired from Sheriff of P65,000 and P81,250, respectively. The Unrealized profits in the year-end 2019 and 2020 inventories were:

Baelfire Corporation owns an 80% interest in Sheriff Corporation acquired several years ago. Sheriff regularly sells merchandise to its parent at 125% of Sheriff's cost. Gross profit data of Baelfire and Sheriff for the year 2020 are as follows: Baelfire P650,000 Sheriff P520,000 416,000 P104,000 Sales . Cost of goods sold . Gross profit . 520,000 P 130,000 During 2020, Baelfire purchases inventory items from Sheriff at a transfer price of P260,000. Baelfire's December 31, 2019 and 2020 inventories included goods acquired from Sheriff of P65,000 and P81,250, respectively. The Unrealized profits in the year-end 2019 and 2020 inventories were:

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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QUESTION 38 Boins Corporation, a calendar year relail S Corporation, incurred the following items during the year of 2023: Municipal Bond Interest-$7,000; Sales-$120,000; Section 1250 Gain-$12,000; Long-Term Capital Gain-$20,000; Cost Of Goods Sold-$42,000; Administrative Expenses $15,000; Depreciation Expense. $17,000; Charitable Contribution-$10,000. Boins Corporation's Nonseparately Income for the year of 2023 is: $78,000. O$58,000 O $46,000. $85,000.
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Instructions (X) Jonas Company purchased a photocopier that cost $15,000. The copier was expected to last for 1.25 million copies. In the first year of service the copier produced 180,000 copies, in the second year 250,000 copies and in the third year it had produced 175,000 copies. The company decided to sell the machine for $6,500 in the third year. Required: 1. Record the purchase and the three years of depreciation. 2. Record the subsequent gain or loss on the disposal of the machine.
why is it 800,000-740,000 and not 800,000-720,000