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1) A company assigned $6,000,000 of their account receivable as collateral for a loan processed by the bank of $2,000,000 at 8%. It also paid
1) A company assigned $6,000,000 of their account receivable as collateral for a loan processed by the bank of $2,000,000 at 8%. It also paid 1% financial fees for the transaction. The gain or loss to be recorded in the record of the transfer of accounts receivable is: a. loss of $540,000 b. loss of $60,000 c. loss of $480,000 d. 0
2) The final inventory determined by a company is of $600,000. If the company use the FIFO method, use the following information related to its inventory to determine the value of the inventory that will be informed in the statement of financial position:
Inventory at selling prices - $620,000
Costs to achieve sales - $30,000
Replacement cost - $520,000
a. $590,000 b. 620,000 c. $520,000 d. 600,000
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