Bob is a farmer and is required to use the accrual method. At the beginning of the year, Bob has inventory, including livestock held for resale, amounting to $10,000. During the year, Bob purchased livestock totaling $3,000. Bob’s ending inventory was $4,000. Bob’snet sales for the year totaled $17,000. What is Bob’s gross profit for the current year?a. $9,000b. $17,000c. $8,000d. $13,000
Bob is a farmer and is required to use the accrual method. At the beginning of the year, Bob has inventory, including livestock held for resale, amounting to $10,000. During the year, Bob purchased livestock totaling $3,000. Bob’s ending inventory was $4,000. Bob’snet sales for the year totaled $17,000. What is Bob’s gross profit for the current year?a. $9,000b. $17,000c. $8,000d. $13,000
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 4CPA
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Bob is a farmer and is required to use the accrual method. At the beginning of the year, Bob has inventory, including livestock held for resale, amounting to $10,000. During the year, Bob purchased livestock totaling $3,000. Bob’s ending inventory was $4,000. Bob’snet sales for the year totaled $17,000. What is Bob’s gross profit for the current year?
a. $9,000
b. $17,000
c. $8,000
d. $13,000
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