If you were John Glaser, what would you do? Why? How will you measure the risks and rewards? Suppose Compass Box had whisky that they had bought 6 years ago as new fill whisky with inventoriable costs incurred to date (i.e., historic cost) of £300, completion cost of £130, and an expected selling price of £600. Assume that the cost to buy comparable whisky on the spot market (i.e., replacement cost) is more than £300. What journal entries would be required if: The selling price dropped to £500? The selling price remained at £600, but the replacement cost dropped to £100? The selling price dropped to £400 and the replacement cost dropped to £100? The selling price previously dropped to £400, and then recovered to £650?
If you were John Glaser, what would you do? Why? How will you measure the risks and rewards?
Suppose Compass Box had whisky that they had bought 6 years ago as new fill whisky with inventoriable costs incurred to date (i.e., historic cost) of £300, completion cost of £130, and an expected selling price of £600. Assume that the cost to buy comparable whisky on the spot market (i.e., replacement cost) is more than £300. What
The selling price dropped to £500?
The selling price remained at £600, but the replacement cost dropped to £100?
The selling price dropped to £400 and the replacement cost dropped to £100?
The selling price previously dropped to £400, and then recovered to £650?
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