Answered: 18. Information on Broken Co.'s…

18. Information on Broken Co.'s inventories is as follows: 20x2 20x1 450,000 440,000 Inventory, December 31 at cost Inventory, December 31 at NRV 490,000 410,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 6MCQ: Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is...

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Question

What is the right answer in the options?

18. Information on Broken Co.'s inventories is as follows:
20x2
20x1
450,000
440,000
Inventory, December 31 at cost
Inventory, December 31 at NRV
490,000
410,000
What amount of inventory write-up (or reversal of inventory
write-down) is recognized in 20x2?
a. 40,000
b. 30,000
c. 20,000
d. 0

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