Accounting
Question # 00182916
Posted By:
Updated on: 01/29/2016 01:59 PM Due on: 01/30/2016
Historical cost $20,000
Replacement Cost 14,000
Estimated selling price 17,000
Costs to complete / sell 2,000
Normal profit margin %20
The inventory of product A that was on hand at December 31, Year 1, was completed in Year 2 at a cost of $1,800 and sold at a price of $17,150.
Required:Summarize the difference in income, total assets and total stockholder’s equity using the two different sets of accounting rules over the two-year period.
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Rating:
/5
Solution: Accounting