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33 Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods
33 Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using a. LIFO will have the highest ending inventory.. b. FIFO will have the highest cost of good sold. FIFO will have the highest ending inventory. PP d. LIFO will have the lowest cost of goods sold. 34The depreciation method that applies a constant percentage to depreciable cost in- calculating depreciation is E h. C. d Straight-line Units-of activity. Declining-balance None of these. 35A factory machine was purchased for $25,000. on January 1202 It was estimated that it would have a $5,000. salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. If the actual number of machine hours ran in 2004 was 4,000 hours and the company uses the units-of-activity method of depreciation, the amount of depreciation expense for a oal would be. $2,500. $4,000. b. C. $5,000. $2,000
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