holding gain
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
In the company’s statement of comprehensive income restated to average current cost, how much would be reported as realized holding gain arising from inventory sold for 2020?
30,000
105,000
135,000
225,000

Transcribed Image Text:Information with respect to ABC Co.'s cost of goods sold for 2020 is presented below:
Units
Historical Cost
530,000
2,790,000
3,320,000
( 945,000)
2,375,000
Inventory, January 1
Purchases
10,000
45,000
55,000
( 15,000)
40,000
Goods available for sale
Inventory, December 31
Cost of goods sold
The current cost per unit of inventory was P58 on January 1 and P72 on December 31.
In the company's statement of comprehensive income restated to average current cost,
how much would be reported as realized holding gain arising from inventory sold for
2020?
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