Right Company purchased merchandise for $4,000 and sold it for $6,000. Between the time the inventory was purchased and sold, it appreciated in value by $500. What is the gross profit to be reflected on the income statement when the inventory is sold? $6,000 B $2,500 $2,000 $1,500

Right Company purchased merchandise for $4,000 and sold it for $6,000. Between the time the inventory was purchased and sold, it appreciated in value by $500. What is the gross profit to be reflected on the income statement when the inventory is sold? $6,000 B $2,500 $2,000 $1,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Right Company purchased merchandise for $4,000 and sold it for $6,000. Between the time the inventory was purchased and
sold, it appreciated in value by $500. What is the gross profit to be reflected on the income statement when the inventory is sold?
A $6,000
B $2,500
$2,000
$1,500

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