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:UnitsHistorical Cost530,0002,790,0003,320,000( 945,000)2,375,000Inventory, January 1Purchases10,00045,00055,000( 15,000)40,000Goods available for saleInventory, December 31Cost of goods soldThe 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 for2020?

Definition: Holding Gain: Realized holding gain is calculated by deducting original purchase price…

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holding gain

Financial And Managerial Accounting

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Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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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

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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