1) On March 1, 2025, Sheffield Dog Treat Company purchased a new conveyor component to be attached to its dog bone production line. The cost of this component was $143000. Sheffield also incurred $19000 of installation costs and $16000 of costs to rearrange the production line. By adding this component, Sheffield estimates production of its dog bones will increase by 30%, although the life of the production line was not extended. What amount of these costs should be capitalized?

a) $178000

b) $162000

c) $0

d) $143000

2) Which of the following is not a consideration in choosing how to apply the lower-of-cost-or-net realizable value method to inventory?

a) The method used in previous periods

b) Tax rules

c) The number of end products produced

d) All of these are considerations in choosing how to apply the lower-of-cost-or-net realizable value method to inventory

3) The amount of consideration that a company expects to receive from a customer in exchange for transferring goods or services is

a) the transaction price.

b) an amount specified and determined in the contract.

c) easily determined because it is a fixed amount.

d) all of these answers are correct.