The input cost changes that occur after the purchase of inventory items in a current cost accounting system are recognized as Multiple Choice ⚫ realized gains and losses. ⚫costs of goods sold. ⚫ unrealized holding gains and losses. ⚫extraordinary gains and losses. On January 2, 20X1, Jensen Corporation sells equipment it manufactured to Lewisburg Fabricators in exchange for an $80,000 note due in five years. The note bears no stated interest rate, but requires the entire $80,000 to be repaid at the end of five years. Jensen recently sold the same equipment to another company for $54,447. When Lewisburg Fabricators sought bank financing for this purchase the company was offered the funds at 8%, but decided to let Jensen hold the note. What will be the balance in the Notes Receivable-Lewisburg Fabricators account at the end of 20X2? Multiple Choice $80,000 . $54,447 . $63,507 . $58,802
The input cost changes that occur after the purchase of inventory items in a current cost accounting system are recognized as Multiple Choice ⚫ realized gains and losses. ⚫costs of goods sold. ⚫ unrealized holding gains and losses. ⚫extraordinary gains and losses. On January 2, 20X1, Jensen Corporation sells equipment it manufactured to Lewisburg Fabricators in exchange for an $80,000 note due in five years. The note bears no stated interest rate, but requires the entire $80,000 to be repaid at the end of five years. Jensen recently sold the same equipment to another company for $54,447. When Lewisburg Fabricators sought bank financing for this purchase the company was offered the funds at 8%, but decided to let Jensen hold the note. What will be the balance in the Notes Receivable-Lewisburg Fabricators account at the end of 20X2? Multiple Choice $80,000 . $54,447 . $63,507 . $58,802
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The input cost changes that occur after the purchase of inventory items in a current cost accounting system are
recognized as
Multiple Choice
⚫ realized gains and losses.
⚫costs of goods sold.
⚫ unrealized holding gains and losses.
⚫extraordinary gains and losses.
On January 2, 20X1, Jensen Corporation sells equipment it manufactured to Lewisburg Fabricators in exchange for an
$80,000 note due in five years. The note bears no stated interest rate, but requires the entire $80,000 to be repaid at the
end of five years. Jensen recently sold the same equipment to another company for $54,447. When Lewisburg Fabricators
sought bank financing for this purchase the company was offered the funds at 8%, but decided to let Jensen hold the
note.
What will be the balance in the Notes Receivable-Lewisburg Fabricators account at the end of 20X2?
Multiple Choice
$80,000
.
$54,447
.
$63,507
.
$58,802
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