What amount should be reported as gain or loss

Assignment Help Accounting Basics
Reference no: EM132953614

Question - During 2013, Davis Company changed from FIFO to weighted average method of inventory valuation. The FIFO inventory was P 710,000 on January 1 and P790,000 on December 31. The average inventory was P 770,000 on January 1 and P 830.000 on December 31. The income tax rate is 30%. In the 2013 income statement, what amount should be reported, as gain or loss on the cumulative effect of this change?

Reference no: EM132953614

Questions Cloud

Compute what is the equivalent annual cost : Compute What is the equivalent annual cost? A 3-year project has a contribution margin of $16, projected fixed costs of $120,000
What is the present value of the projected : What is the present value of the projected after-tax cash flows using nominal dollars and the nominal rate of return
Developing a monthly cash budget : At your firm you are responsible for developing a monthly cash budget (forecast) for the next 3 months. The dollar amounts are in 000s (thousands).
What has historically been the capital structure : Explain and give a simple example of the different financial criteria for capital budget evaluation (NPV, IRR, Payback period, C / B analysis).
What amount should be reported as gain or loss : The income tax rate is 30%. In the 2013 income statement, what amount should be reported, as gain or loss on the cumulative effect of this change
Total capital of a company : 1. Shares represent units of ownership interest or a specificpart of the total capital of a company.
Compute the carrying value of the investment : Using the information in requirement no. 3, compute the carrying value of the investment in associates on December 31, 2020
What is the present value of inheritance : Your investments earn 6% annually, compounded annually. To the nearest hundred dollars, what is the present value of your inheritance?
What are the operating cash flows in year : Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $48,000 and will be depreciated straight-line over 3 years.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Securities-risk and their betas

Security A has an expected return of 7 percent, a standard deviation of expected returns of 35 percent, a correlation coefficient with the market of -0.3, and a beta coefficient of -0.5. Security B has an expected return of 12 percent

  What should tax reform do

At the very least, a broader conversation about this country's tax policy is necessary, and that means asking a simple question: What should tax reform do

  What is tyneka basis for the shares purchased on august

Tyneka inherited 1,000 shares of Aqua, Inc. stock from Joe. What is Tyneka's basis for the 1,000 shares purchased on August 20, 2013

  What is the value of accounts receivables

The company' credit term for their customers is 30 days. The Total sales is 275000. What is the value of accounts receivables at the end of the year

  Analyze at least three items on the balance sheet

Analyze at least three items on the balance sheet for your base company that would be important to an investor, and discuss whether your company's performance.

  What is the total amount invested

On January 14, Mountain Rocks Inc., a marble contractor, issued for cash 24,000 shares of $25 par common stock at $32, What is the total amount invested

  Solve the target cost per unit the company must achieve

The desired return on investment (ROI) is 10%. Calculate the target cost per unit the company must achieve to ensure it attains its desired ROI

  Prepare a schedule showing the estimated increase

Prepare a schedule showing the estimated increase in annual net income from the planned manufacture and sale of dinosaur toys.

  Describe the elements of each financial statement

Discuss the impact of accounting transactions in financial statements. Describe the elements and purpose of each financial statement

  Prepare the journal entries in the consolidation journal

On the date of acquisition, the shareholders' equity value of Tonic Ltd is $240000. Prepare the journal entries in the consolidation journal

  What is the breakeven point for monthly sales of the houses

What is the monthly profit if 12 houses are built and sold per month? What is the breakeven point for monthly sales of the houses?

  Consider the production cost information for santiagos

santaigos salsaproduction costsapril 2008production 20000 jars of salsaingredient cost variable 16000labor cost

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd