Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Case 1 / Inventory (4 points) On December 31, X1, entity A owns 250 units of merchandise MAX. Purchase of 1.000 units took place on
Case 1 / Inventory (4 points) On December 31, X1, entity A owns 250 units of merchandise MAX. Purchase of 1.000 units took place on November 10, X1. Costs of purchase were CU 1 per unit. Settlement in cash at the same date. 750 Units were sold cash on 10 December (selling price CU 1.2 per unit). The statement of comprehensive income is prepared using the function of expense method. Income tax rate 30 %. For the measurement of merchandise MAX on December 31, Xi you get the following information (per unit): Expected selling price CU 1.10 Estimated selling expenses CU 0.16 Replacement costs CU 1.20 Fair value CU 1.05 Tax base .... CU 1.00 Additional information: Merchandise MAX was purchased the first time on November 1, X1. No further purchases in X1. Journal entries for purchase and sells have been made by the bookkeeper. Required: Prepare any necessary entries in A's financial statements at December 31, X1 for merchandise MAX. Take deferred taxes into account! Additional question: Under which circumstances is raw material written down at the end of reporting period? Note: Answer should include the related IFRS paragraph
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started