1. Cullumber Corporation had the following amounts, all at retail:

Beginning inventory	$ 2500		Purchases	$ 134000
Purchase returns	4900		Net markups	12500
Abnormal shortage	2900		Net markdowns	1700
Sales revenue	66000		Sales returns	1250
Employee discounts	1050		Normal shortage	2050

What is Cullumbers ending inventory at retail using the conventional retail method?

$73750.

$71650.

$74550.

$72700.

2. On August 31, a hurricane destroyed a retail location of Crane's Clothier including the entire inventory on hand at the location. The inventory on hand as of June 30 totaled $1915000. Since June 30 until the time of the hurricane, the company made purchases of $507000 and had sales of $1496000. Assuming the rate of gross profit to selling price is 30%, what is the approximate value of the inventory that was destroyed?

$867800.

$1374800.

$1973200.

$1915000.

3. On February 1, 2020, Oriole Company purchased a parcel of land as a factory site for $328000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below:

Demolition of old building		$	19500
Architect's fees		33000
Legal fees for title investigation and purchase contract		4800
Construction costs		1383000
(Salvaged materials resulting from demolition were sold for $10600.)

Oriole should record the cost of the land and new building, respectively, as

$352300 and $1405400.

$336900 and $1416000.

$336900 and $1420800.

$341700 and $1416000.