Question
1. On January 1, 2021, Nova Company paid $200,000 for 5,000 shares of Acme Inc.s common stock. The 10% ownership of Acme does not allow
1. On January 1, 2021, Nova Company paid $200,000 for 5,000 shares of Acme Inc.s common stock. The 10% ownership of Acme does not allow Nova to exert significant influence over Acme. Acme reported net income of $50,000 for the year ended December 31, 2021. The fair value of Acme stock on that date was $43 per share.
What amount will be reported for Investment in Acme on Novas balance sheet at December 31, 2021?
A. 200,000
B. 250,000
C. 265,000
D. 215,000
2. Bond Company adopted the Dollar-Value LIFO inventory method on January 1, 2021. The following data were available for Bonds inventory for the three years following the adoption.
Ending Inventory At Current Year Year Costs Cost Index 1/01/2021 $550,000 1.00 12/31/2021 $642,000 1.07 12/31/2022 $725,000 1.25 12/31/2023 $812,500 1.30
Under the Dollar-Value LIFO method, what would be reported for inventory at 12/31/2023?
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