Carolina Company has a normal markup of 40%. Its cost-to-sales ratio is 71.4%. 67.5%. 60%. Cannot be calculated. Question 18 (1 point) Which term describes a situation where the buyer is responsible for paying shipping and other costs incurred while goods are in transit from the seller's premise to the buyer's premises. FOB shipping FOB destination FOB purchasing FOB receiving Question 19 (1 point) Tamarack Co. prepares its estimate of the lower of cost and net realizable value of its inventory. Inventory item 101 cost $45 and its current replacement cost is $50. The item is currently selling in the market for $55 and selling costs are estimated to be $6. Tamarack expects to earn a profit of $4 on the sale of this item. In its year-end financial statements, Tamarack Co. should value this item at $50. $45. $49. $55. Question 20 (1 point) Argyle Company failed to include a number of inventory items in the inventory count at the end of the last period. Assuming no other inventory errors, the effect on the current period is an overstatement of gross profit. an understatement of COGS. an overstatement of ending inventory. an understatement of net income