How to get these MCQS answers

7) The following information was taken from the inventory records of Penelope Ltd.: Dates Inventory - Feb 1 Purchases - April 1 Purchases - July 15 Inventory units 100 units at $3.00 Boo units at $3.10 1200 units at $3.20 Sales - May 10 Sales - November 15 200 units at $6.00 100 units at $6.10 What would be the gross margin, assuming that the weighted average method is used in a periodic inventory system? A) $310 B) $875 C) $935 D) $1,810 8 A fire destroyed the inventory of Mantis Company in June. Reconstructed data follows: 40% Gross margin as a percentage of sales Sales to date of fire Gross purchases to date of fire Purchase returns and allowances to date of fire Freight-in sales returns Beginning inventory 460,000 280,000 8,000 4,000 10,000 28,000 What was the cost of the inventory lost in the fire? A) $50,000 B) $34,000 C) $30,000 D) $26.000 9 Grover Inc. wishes to use the revaluation model for this property: Building Gross Value Building Accumulated Depreciation Net carrying value Before Revaluation 120.000 40,000 80.000 The fair value for the property is $100,000. What would be the effect of recording the revaluation? A) $20,000 decrease in net income B) $20,000 increase in net income C) $20,000 decrease in other comprehensive income D) $20,000 increase in other comprehensive income 10) On March 1, 2012, Penguin Company (PC) had been renting its office building for several years and decided to have a new office building constructed. On April 1, 2012, it acquired land with an abandoned warehouse on it for $100,000. Other costs included: Demolition of warehouse Legal fees for purchase of land Iconstruction costs of new building Proceeds from salvage of warehouse materials Installation of wiring and plumbing fixtures Architectural fees 20,000 2.400 400,000 4,000 16,000 24,000 How much will be capitalized to 'building' in fiscal 2012? A) $380,000 B) $400,000 C) $420,000 D) $440,000