Deluxe Auto Parts holds inventory all over the world. Assume that the records for one auto part show the following: Beginning inventory $ 2,20,000 Net purchases 8,00,000 Net sales 11,00,000 Gross profit rate 45% Suppose this inventory, stored in the United States, was lost in a fire. Estimate the amount of the loss to Deluxe Auto Parts. Use the gross profit method.
Deluxe Auto Parts holds inventory all over the world. Assume that the records for one auto part show the following: Beginning inventory $ 2,20,000 Net purchases 8,00,000 Net sales 11,00,000 Gross profit rate 45% Suppose this inventory, stored in the United States, was lost in a fire. Estimate the amount of the loss to Deluxe Auto Parts. Use the gross profit method.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter16: Multijurisdictional Taxation
Section: Chapter Questions
Problem 10P
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Transcribed Image Text:Deluxe Auto Parts holds inventory all over the world. Assume that the
records for one auto part show the following:
Beginning inventory $ 2,20,000
Net purchases
8,00,000
Net sales
11,00,000
Gross profit rate
45%
Suppose this inventory, stored in the United States, was lost in a fire.
Estimate the amount of the loss to Deluxe Auto Parts. Use the gross
profit method.
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