Loyas inc reported net income of $ 65,000 for the current year. loyas determined that inventory was understated by $ 10,000 at the beginning of the year and understated by $ 5,000 at the end of the year. Assuming a tax rate of 30 percent, what is the corrected amount of net income for the year?

$54,500

$ 61,500

$ 68,500

$ 75,500

Wally Place began using dollar value LIFO for costing its inventory last year. The base year layer consists of $500,000. Assuming there are no old layers of inventory besides the base layer and the current inventory at end of year prices equals $660,000, what is the ending inventory using dollar-value LIFO if the index for the current year is 1.10?

$ 600,000

$ 610,000

$660,000

$ 620,000

Nity Corporation, an commercial airline company, contracted in 2018 to purchase 500,000 barrels of jet fuel at $115 per barrel, delivery and payment to be made in June of 2020. By 12/31/2018, the price per barrel of jet fuel had dropped to $ 98. By 12/31/2019, the price per barrel of jet fuel was $108. On 12/31/2019, Nity should report:

unrealized loss from purchase commitment of $ 5,000,000

unrealized loss from purchase commitment of $ 3,500,000

unrealized gain from purchase commitment of $5,000,000

unrealized gain from purchase commitment of $3,500,000

On january 1, 2021, the balance in Star Companys "allowance for Reduction of Inventory to Market '' was $ 10,000 (credit). At December 31,2021, the cost of Star Company's inventory was $ 160,000. It was estimated that the market value of these items was $ 130,000. At December 31, 2022, the cost Star Companys inventory was $ 187,000. It was estimated that the market value of these items was $173,000. What is the adjustment to the "Allowance for reduction of inventory to Market account in the December 31, 2022 adjusting entry ?

$24,000 debit

$ 14,000 credit

$14,000 debit

$ 24,000 credit

$16,000 debit

Tula Company exchanged machinery with an appraised value of $1,755,000, an original cost of $ 2,700,000 and accumulated depreciation of $1,350,000 with Gidy Corporation for machinery Gidy owns. Gidy also gave Tula $60,000 Doo in the exchange. This exchange is not expected to change future cash flows of either company. How much should Tula record approximately as the cost of the new machine?

$ 1,755,112

$ 1,695,787

$ 1,303,846

$1,289,344

On April 1, Brioch Company began construction of a small building. The following expenditures were incurred for construction

April 1 $ 72,000

May 1 180,000

July 1 270,000

November 1 87,000

The building was completed and occupied on November 1 of the same year. To help pay for construction $160,000 was borrowed on April 1 on a 11%, three-year note payable. The other debt outstanding during the year was a $ 750,000, 10% note issued two years ago, and a $600,000, 5.5% note issued three years ago. How much interest should Brioch capitalize for the year?

$ 16,680

$ 20,560

$21,160

$ 22,534