During 2020, Martinez Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Martinez for a lump sum of $113,715 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below. Type   No. of Chairs   Estimated Selling Price Each Lounge chairs   720   $90   Armchairs   540   80   Straight chairs   1,260   50   During 2020, Martinez sells 380 lounge chairs, 190 armchairs, and 228 straight chairs. What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.) Gross profit realized during 2020   $enter a dollar amount   Amount of inventory of unsold straight chairs   $enter a dollar amount

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
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During 2020, Martinez Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Martinez for a lump sum of $113,715 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below.

Type
 
No. of Chairs
 
Estimated Selling
Price Each
Lounge chairs
  720   $90  
Armchairs
  540   80  
Straight chairs
  1,260   50  


During 2020, Martinez sells 380 lounge chairs, 190 armchairs, and 228 straight chairs.

What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

Gross profit realized during 2020
 
$enter a dollar amount
 
Amount of inventory of unsold straight chairs
 
$enter a dollar amount
 
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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