As of 12/31/2018 the Available for Sale Securities have a fair value of $290,006. Due to the market conditions, the company does not plan on selling the assets in 2019, but their intent is to sell at some point in time. You can ignore the tax effect on unrealized gains and losses. a. b. The office building was bought in January 1, 2016 and Accounting Creations plans to use the building for 40 years and believes it will have a salvage value of $250,000 at the end of 40 years Accounting Creations depreciates the building on a straight-line basis. Due to the location of the building and use potential, Accounting Creations is concerned about impairment. At 12/31/2018 it is determined that the future cash flows for the building are $3,000,000. The fair value of the building is $3,406,000 at 12/31/2018 Depreciation expense- Office Building Accumulated depreciation- Office Building m. After reviewing details of sales, you note that the sales taxes collected on the last week of December's sales were included in sales revenue. Sales recorded the last week of December that included the sales tax of 7% amounted to $350,000. n. Accounting Creations uses the Dollar Value LIFO inventory method. For internal purposes, the Merchandise Inventory Account is maintained at FIFO (current costs). At the end of the year, the LIFO reserve account is adjusted so inventory on the balance sheet reflects Dollar Value LIFO You need to calculate the proper inventory balance and adjust the LIFO reserve. The price index for this year is 1.26. Prior year inventory records show the following calculation for 2018 175,000 X1.0- 175,000 100,000 X 1.05- 105,000 All office equipment was purchased January 1, 2017. Accounting Creations uses the DDB method to depreciate office equipment. No office equipment has been added since the initial purchase. It is estimated that the office equipment has a useful life of 10 years with a salvage value of $12,000