How do I fill in the table properly? Smith Distributors, Inc., supplies ice cream shops with various toppings for making sundaes. On November 17, 2021, a fire resulted inthe loss of all of the toppings stored in one section of the warehouse. The company must provide its insurance company with anestimate of the amount of inventory lost. The following information is available from the company's accounting records:FruitТоppings$ 23,000Marshmallow ChocolateТоppings$ 7,300Inventory, January 1, 2021Net purchases through Nov. 17Net sales through Nov. 17Historical gross profit ratioToppings$ 3,30012,30020,30035165,000215,00039,00058,00020%30%Required:1. Calculate the estimated cost of each of the toppings lost in the fire.Estimated cost ofToppingslost inventoryFruitMarshmallowChocolate

Solution: Computation fo estimated cost of each of the toppings lost in fire is as under:

arious toppings for making sun the loss of all of the toppings stored in one section of the warehouse. The company must provide its insurance company with an estimate of the amount of inventory lost. The following information is available from the company's accounting records: ibutors, Inc., supplies snops Tire resulte Fruit Marshmallow Chocolate Тоppinga $ 23,000 Toppings $ 7,300 Inventory, January 1, 2021 Net purchases through Nov. 17 Net sales through Nov. 17 Historical gross profit ratio Toppings $ 3,300 12,300 20,300 165,000 215,000 39,000 58,000 30 20% 358 Required: 1. Calculate the estimated cost of each of the toppings lost in the fire.

arious toppings for making sun the loss of all of the toppings stored in one section of the warehouse. The company must provide its insurance company with an estimate of the amount of inventory lost. The following information is available from the company's accounting records: ibutors, Inc., supplies snops Tire resulte Fruit Marshmallow Chocolate Тоppinga $ 23,000 Toppings $ 7,300 Inventory, January 1, 2021 Net purchases through Nov. 17 Net sales through Nov. 17 Historical gross profit ratio Toppings $ 3,300 12,300 20,300 165,000 215,000 39,000 58,000 30 20% 358 Required: 1. Calculate the estimated cost of each of the toppings lost in the fire.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 45P: The Goodson Company is a chain of retail electronics stores. How much of a loss can Goodson deduct...

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Southern Distributors, Incorporated, supplies ice cream shops with various toppings for making sundaes. On November 17, 2024, a fire resulted in the loss of all of the toppings stored in one section of the warehouse. The company must provide its insurance company with an estimate of the amount of inventory lost. The following information is available from the company's accounting records: Inventory, January 1, 2024 Net purchases through November 17 Net sales through November 17 Historical gross profit ratio Ker Fruit Toppings Fruit Marshmallow Chocolate Toppings Toppings Toppings $ 29,000 $ 7,900 $ 3,900 195,000 Marshmallow Chocolate 245,000 15% Estimated cost of lost inventory 45,000 64,000 25% 1. Calculate the estimated cost of each of the toppings lost in the fire. 12,900 20,900 30%
Southern Distributors, Incorporated, supplies ice cream shops with various toppings for making sundaes. On November 17, 2024, a fire resulted in the loss of all of the toppings stored in one section of the warehouse. The company must provide its insurance company with an estimate of the amount of inventory lost. The following information is available from the company's accounting records: Inventory, January 1, 2024 Net purchases through November 17 Net sales through November 17 Historical gross profit ratio Fruit Toppings Required: 1. Calculate the estimated cost of each of the toppings lost in the fire. Marshmallow Chocolate Fruit Toppings $ 24,000 170,000 220,000 Estimated cost of lost Inventory 20% Marshmallow Toppings $ 7,400 40,000 59,000 30% Chocolate Toppings $3,400 12,400 20,400 30%
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