Reference no: EM131204914
Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1, 2016, was $700,000 (35,000 units at $20 each). During 2016, 110,000 units were purchased, all at the same price of $26 per unit. 115,000 units were sold during 2016. Esquire uses a periodic inventory system. Assuming an income tax rate of 40%, what is LIFO liquidation profit or loss that the company would report in a disclosure note accompanying its financial statements?
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Transactions pertaining to investments in common stock
: Nosker Inc. had the following transactions pertaining to investments in common stock. Jan. 1 Purchased 4,400 shares of Escalante Corporation common stock (5%) for $246,400 cash. July 1 Received a cash dividend of $3 per share. Dec. 1 Sold 880 shares ..
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Transactions pertaining to debt investments
: Jenek Corporation had the following transactions pertaining to debt investments. 1. Purchased 67 9%, $2,000 Leeds Co. bonds for $134,000 cash on January 1, 2017. Interest is payable annually on January 1. 2. Accrued interest on Leeds Co. bonds on Dec..
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What are the ethical issues involved in this situation
: Steve Morgan, controller for Newton Industries, was reviewing production cost reports for the year. One amount in these reports continued to bother him—advertising. Who are the stakeholders in this situation? What are the ethical issues involved in t..
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Unpredictability in the foreign currency markets
: Smith & Sons routinely purchases inventory from Matsutoshi Corporation. Because of unpredictability in the foreign currency markets, transactions denominated in yen leave Smith & Sons exposed to the risks associated with exchange rate changes. Identi..
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Esquire uses a periodic inventory system
: Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1, 2016, was $700,000 (35,000 units at $20 each). During 2016, 110,000 units were purchased, all at the same price of $26 per unit. 115,000 units were sold during 2016. Es..
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Issued the certificates for the common stock dividend
: Selected transactions completed by Primo Discount Corporation during the current fiscal year are as follows: Jan. 9 Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 1,092,000 common shares outs..
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Accounts for the stockholders equity accounts listed
: Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balances on January 1, 2016, are as follows: Common stock, $20 stated value; 500,000 shares authorized, 399,000 issued $7,980,0..
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Journalize the entries to record the may transactions
: On December 1 of the current year, the following accounts and their balances appear in the ledger of Latte Corp., a coffee processor: Preferred 2% Stock, $50 par (240,000 shares authorized, 84,000 shares issued) $4,200,000 Paid-In Capital in Excess o..
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Partial equity method for internal accounting purposes
: Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2014, for $652,000 in cash. Annual excess amortization of $13,700 results from this transaction. What would be the amount of consolidated retained earnings on December 31..
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