Question
On Dec 4, 2018, DoCo enters into a contractual agreement to take delivery on Jan 5, 2019 of 10,000 lbs of n..s@$2.20 per lbs. On
On Dec 4, 2018, DoCo enters into a contractual agreement to take delivery on Jan 5, 2019 of 10,000 lbs of n..s@$2.20 per lbs.
On Dec 31, 2018, DoCo finds that market price of the nuts dropped to $1.90 per lbs & management decides that the decline is permanent.
DoCo should show these developments on its 2018 financial statements as...
a) 22k liability b) 19K liability c) 3k liability d) no liability
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Essentials Of Accounting
Authors: Leslie Breitner, Robert Anthony
11th Edition
0132744376, 978-0132744379
