What should be the impairment loss for inventory

Assignment Help Accounting Basics
Reference no: EM132668967

The following inventory information was taken from the records of GlobeKom Ltd:

Historical cost $12,000

Replacement cost $9,000

Expected selling price $10,000

Expected selling cost $1,500

Normal profit margin 10% of selling price

Problem 1: Under IAS 2, what is the net realizable value for inventory?

A. 10,000

B. 9,500

C. 9,000

D. 8,500

Problem 2: Under IAS 2, what should be the impairment loss for Inventory

A.0

B.2,000

c.3,500

D.1,500

Problem 3: Under U.S. GAAP, what should be the market value for Inventory (assuming LCM method is used)?

A.9000

B.9,500

C.8,500

D.10,000

Problem 4: Under U.S. GAAP, what should be the impairment loss for inventory (assuming LCM method is used)?

A. 0

B.2,000

C.1,500

D.3500

Reference no: EM132668967

Questions Cloud

Determine gain on constructive retirement of bond payable : Determine the Gain (loss) on constructive retirement of bond payable amounts that will appear in the 2020 consolidated income statements
Write down audi culture : Write down Audi's culture. If there is some reference website then also give the link.
Compare Cynthia Cooper conflict resolution style : What was Cynthia Cooper's role in uncovering the fraud at WorldCom? Compare Cynthia Cooper's conflict resolution style with the style used by Betty Vinson.
Identify the various methods used by correctional officers : The paper should identify the various methods used by police or correctional officers in overcoming resistance in arrest or control situations.
What should be the impairment loss for inventory : What should be the impairment loss for inventory (assuming LCM method is used)? What should be the market value for Inventory (assuming LCM method is used)?
Analyze the constitutionality of officer williams actions : Officer Williams is an officer with the Richmond police department and has been with the department for five years. He received information that a citizen.
Communication would differ in each situation : Evaluate how or if your communication would differ in each situation. Would there be differences in the decision making process when involving these individuals
What recommendations can you propose to encourage : Explain, with relevant examples of local and/or international practices, the most pertinent individual and organisational factors that lead individuals
What is the basic earnings per share for subsidiary company : What is the basic earnings per share for subsidiary company? Convertible Preferred StockDividends = $25,000 Convertible into 5,000 shares of common stock

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much was lantz operating income

Cash collections from customers for services yet to be provided totaled $88,000. How much was Lantz operating income

  Record the journal entry to reflect the payroll tax

Record the journal entry to reflect the (employer) payroll tax expenses for the February 26 payroll payment. Record the entries for merchandise sold on March

  How should Marvin Corporation and Valerie Corporation record

Marvin Corporation received the vehicle. How should Marvin Corporation and Valerie Corporation record these transactions

  A new member of the san diego chargers wants the team to

a new member of the san diego chargers wants the team to transfer 1000000 into an escrow account in his name for later

  Prepare purchases day book

Jan 20 received a credit note no 006 of sh.3200 from Tamara sh.460 and Jan 18 credit sales to Patel sh. 4,800. Prepare Purchases day book

  Creative and innovative than the traditional organization

What factors account for the fact that the learning organization is described as more creative and innovative than the traditional organization form?

  Why written management representations are obtained

Explain why written management representations are obtained, and what items are generally included in the representation letter, including identification

  Management accounting does not have a body of standards

Management Accounting does not have a body of standards such as those put out by the FASB or IASB

  What is the total amount of interest that ozark earned

What is the total amount of interest that Ozark's earned on the loan to Ben Spell?

  Determine the relevant cash flows for the project

Determine the relevant cash flows for the project and calculate the NPV using a required return of 12%. Show all relevant equations and calculations

  Kenco is negotiating a strategic partner agreement with

kenco is negotiating a strategic partner agreement with the power steel mill. power will deliver perfect cut-to-size

  Record the portion of each employee earnings

Record the portion of each employee's earnings that is taxable under FICA, FUTA, and SUTA, and calculate the total employer's payroll taxes

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