Pearson eText Intermediate Accounting -- Instant Access (Pearson+)
3rd Edition
ISBN: 9780136946649
Author: Elizabeth Gordon, Jana Raedy
Publisher: PEARSON+
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Chapter 10, Problem 2FSC
a.
To determine
Concept Introduction:
Inventory disclosures in the financial statements include accounting policies, measurement basis, and costing method used for the valuation of inventory. The carrying amount of inventory includes raw materials or finished goods. The use of the LIFO costing method when applicable, including LIFO reserve and effects of LIFO Liquidation.
The percentage of inventory at the end of 2019 is accounted for by the
b.
To determine
Concept Introduction:
Inventory disclosures in the financial statements include accounting policies, measurement basis, and costing method used for the valuation of inventory. The carrying amount of inventory includes raw materials or finished goods. The use of the LIFO costing method when applicable, including LIFO reserve and effects of LIFO Liquidation.
The use of LIFO for domestic US inventory and FIFO for international inventory.
c.
To determine
Concept Introduction:
Inventory disclosures in the financial statements include accounting policies, measurement basis, and costing method used for the valuation of inventory. The carrying amount of inventory includes raw materials or finished goods. The use of the LIFO costing method when applicable, including LIFO reserve and effects of LIFO Liquidation.
How FC applies the retail inventory method.
d.
To determine
Concept Introduction:
Inventory disclosures in the financial statements include accounting policies, measurement basis, and costing method used for the valuation of inventory. The carrying amount of inventory includes raw materials or finished goods. The use of the LIFO costing method when applicable, including LIFO reserve and effects of LIFO Liquidation.
The type of cost included in the cost of sales.
e.
To determine
Concept Introduction:
Inventory disclosures in the financial statements include accounting policies, measurement basis, and costing method used for the valuation of inventory. The carrying amount of inventory includes raw materials or finished goods. The use of the LIFO costing method when applicable, including LIFO reserve and effects of LIFO Liquidation.
The reason FC does not report a LIFO reserve.
f.
To determine
Concept Introduction:
Inventory disclosures in the financial statements include accounting policies, measurement basis, and costing method used for the valuation of inventory. The carrying amount of inventory includes raw materials or finished goods. The use of the LIFO costing method when applicable, including LIFO reserve and effects of LIFO Liquidation.
The gross profit percentage of FC in 2017, 2018, and 2019.
g.
To determine
Concept Introduction:
Inventory disclosures in the financial statements include accounting policies, measurement basis, and costing method used for the valuation of inventory. The carrying amount of inventory includes raw materials or finished goods. The use of the LIFO costing method when applicable, including LIFO reserve and effects of LIFO Liquidation.
FC’s inventory turnover ratio and days in inventory on hand in 2019.
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Students have asked these similar questions
Assume that TDW Corporation (calendar-year-end) has 2024 taxable income of $952,000 for purposes of computing the
§179 expense. The company acquired the following assets during 2024: (Use MACRS Table 1, Table 2, Table 3, Table 4,
and Table 5.)
Asset
Machinery
Computer equipment
Furniture
Total
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September 12
February 10
April 2
Basis
$ 2,270,250
263,325
880,425
$ 3,414,000
b. What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2024 on the assets it placed in service in
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Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Maximum total depreciation deduction (including §179 expense)
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Table 2.)
Date Placed in
Asset
Machinery
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Original
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$ 120,000
Computer equipment
February 3
47,500
Used delivery truck*
August 17
Furniture
April 22
60,500
212,500
The delivery truck is not a luxury automobile.
Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.
b. What is the allowable depreciation on Evergreen's property in the current year if Evergreen does not elect out of bonus depreciation
and elects out of §179 expense?
Lina purchased a new car for use in her business during 2024. The auto was the only business asset she purchased
during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including
§179 expense unless stated otherwise) for the automobile in 2024 and 2025 (Lina doesn't want to take bonus
depreciation for 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1,
Table 2, and Exhibit 10-10.)
a. The vehicle cost $40,000, and business use is 100 percent (ignore §179 expense).
Year
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2024
2025
Chapter 10 Solutions
Pearson eText Intermediate Accounting -- Instant Access (Pearson+)
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