23. Dicer uses the cost method to determine its ending inventory at cost. Assume the beginning inventory at cost was $260,000 and at retail was $396,000, purchases during the current year at cost were $1,370,000 and $2,200,000 at retail, freight-in on these purchases totaled $86,000, sales during the current year totaled $2,000,000, and net markups were $48,000 and net markdowns were $72,000, respectively. What is the ending inventory value at cost (to the nearest $1)?

A. $371,228 B. $338,092 C. $381,638 D. $286,804 24. Waterway Industries traded in a manual pressing machine for an automated pressing machine and paid $40,500 cash. The old machine cost $466,000 and had accumulated depreciation of $135,000 up to that date and had a net book value of $331,000. The old machine had a fair value of $295,000.

Which of the following is the correct journal entry to record the exchange assuming a lack of commercial substance?

A. Cash 40,500 Equipment (new) 295,000 Loss on Disposal 36,000 Accum. Deprec. (old) 135,000 Equipment (new) 506,500

B. Equipment (new) 335,500 Loss on Disposal 36,000 Accum. Deprec. (old) 135,000 Equipment (new) 466,000 Cash 40,500

C. Equipment (new) 641,500 Accum. Deprec. (old) 135,000 Equipment (old) 466,000 Cash 40,500