17. What is consigned inventory?

a. Goods that are shipped, but title transfers to the receiver.

b. Goods that are sold, but payment is not required until the goods are sold.

c. Goods that are shipped, but title remains with the shipper.

d. Goods that have been segregated for shipment to a customer.

18. Which inventory costing method most closely approximates current cost for each of the following:

Ending Inventory Cost of Goods Sold

a. FIFO FIFO

b. FIFO LIFO

c. LIFO FIFO

d. LIFO LIFO

19. On April 1, Mooney Corporation purchased for $1,710,000 a tract of land on which was located a warehouse and office building. The following data were collected concerning the property:

Current Assessed Valuation Vendors Original Cost

Land $600,000 $560,000

Warehouse 400,000 360,000

Office building 800,000 680,000

$1,800,000 $1,600,000

What are the appropriate amounts that Mooney should record for the land, warehouse, and office building, respectively?

a. Land, $560,000; warehouse, $360,000; office building, $680,000.

b. Land, $600,000; warehouse, $400,000; office building, $800,000.

c. Land, $598,500; warehouse, $384,750; office building, $363,375.

d. Land, $570,000; warehouse, $380,000; office building, $760,000.

20. Plant assets purchased on long-term credit contracts should be accounted for at

a. the total value of the future payments.

b. the future amount of the future payments.

c. the present value of the future payments.

d. none of these.