Reference no: EM132611028
Ronald Company is a producer of coffee. The entity is considering the valuation of its harvested coffee beans. Industry practice is to value the coffee beans at market value based on local industry references. On December 31, 2019, the entity has harvested coffee beans with fair value less cost to sell of $3,500,000 at the point of harvest.
Because of long aging and maturation process after harvest, the harvested coffee beans were still on hand on December 31, 2020. On such date, the fair value less cost to sell is $3,600,000 and the net realizable value is $3,200,000.
Question 1: How much is the value of the coffee beans inventory on December 31, 2020
Question 2: Assuming that the net realizable value on December 31, 2020is at $3,700,000, how much is the value of the coffee beans inventory on December 31, 2020?
Question 3: Assuming that entity measures its inventory at net realizable value in accordance with well-established practices in their industry (an active market exists and there is a negligible risk of failure to sell), and that the net realizable value is at $3,700,000, the value of the coffee beans inventory on December 31, 2020?
|
How much will the cash balance of the firm
: The current cash balance of the firm is $150,000. How much will the cash balance of the firm be at the end of next year, after the payment of the dividend
|
|
Make income statement and statement of retained earnings
: Prepare an Income Statement, Statement of Retained Earnings and Balance Sheet. Prepare a post-closing trial balance. Record and post closing entries.
|
|
Evaluate the going concern situation at Klein
: Klein Corporation has reported a loss for the 6th year in a row. Evaluate the going concern situation at Klein. Support your answer with three points
|
|
Evaluate performance in your current or past job
: Describe three (3) criteria used to evaluate performance in your current or past job. Discuss the issues of criterion relevance, criterion contamination.
|
|
How much is the value of the coffee beans inventory
: Assuming that the net realizable value on December 31, 2020is at $3,700,000, how much is the value of the coffee beans inventory on December 31, 2020?
|
|
What amount was stockholders equity at january
: Canton Company's stockholders' equity on December 31, 2014 was $211,500. What amount was stockholders' equity at January 1, 2014?
|
|
How much is available for child when child start university
: He deposits $1000 at the beginning of each year, for 20 years, at an interest rate of 6%. How much is available for his child when child will start university.
|
|
What are basic factors that determine value of a currency
: What are the basic factors that determine the value of a currency? In equilibrium, what is the relationship between these factors?
|
|
Autonomic nervous system
: The Autonomic Nervous System can be challenging to understand because it is connected to virtually every body function in opposite ways.
|