Question

Whittier Construction Co. had followed the practice of
expensing all materials assigned to a construction job
without recognizing any salvage inventory. On December
31, 2017, it was determined that salvage inventory should
be valued at $52,000. Of this amount, $29,000 arose during
the current year. How does this information affect the
financial statements to be prepared at the end of 2017?

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Financial Accounting

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