1. Given the following information:inventory for ABC Co. had ending inventory at base year prices of $100,000 of which $20,000 was added last year.This is the first year (ie. base year is last year) and the index is 1.04 for the current year.What is the amount of Dollar Value LIFOinventory for the current year.

a. 100,800

b. 120,800

c. 99,230

d. None of the above

2- Amortized cost is the

a. acquisition cost adjusted for the changes in fair value

b. acquisition cost adjusted for the amortization of discounts or premiums.

c. fair value adjusted for the amortization of discounts or premiums

d. maturity value adjusted for the amortization of discounts or premiums

3-Which of the following would be included in cash and cash equivalent?

a. Treasury bills maturing in 100 days

b. A note receivable due in 10 days

c. A post-dated check that can be cashed in 15 days

d. None oftheabove

4-A 2 year note receivable pays 8% when the market rate of interest is 6%.Which statement is true?

A. A discount of note receivable is created

B. A premium on note receivable is created

C. No discount or premium is created

D. None of the above