holding gain

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
 
 
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?
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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