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Question - On December 31, 2019, an entity experienced a decline in the value of inventory resulting in a write-down from P4,000,000 cost to P3,500,000 net realizable value. The entity used the allowance method to record the necessary adjustment. In 2020, market conditions have improved dramatically. On December 31, 2020, the inventory had a cost of P5,000,000 and net realizable value of P4,800,000. The entity made purchases of P20,000,000 in 2020. What amount should be recognized as gain on reversal of inventory write-down in 2020?
a. 200,000
b. 300,000
c. 500,000
d. 0
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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