# Whittier Construction Co. had followed the practice ofexpensing all materials assigned to a construction jobwithout recognizing any salvage inventory. On December31, 2017, it was determined that salvage inventory shouldbe valued at $52,000. Of this amount,$29,000 arose duringthe current year. How does this information affect thefinancial statements to be prepared at the end of 2017?

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?