Problem 1: (22 marks) (39 minutes) (a) Miller, Ltd. estimates the cost of its physical inventory at March 31 for use in an interim financial statement. The gross profit percentage is 20%. The following account balances are available: $220,000 Inventory, March 1 Purchases Sales during March RSEN 164,000 350,000 What is estimate of the cost of inventory reported on the statement of financial position as at March 312 (4 marks) AN (b) The following information is available for the Stuart Company: Allowance for doubtful accounts at December 31, 20x7 Credit sales during 20x8 Accounts receivable deemed worthless and written off during 20x8 . $ 6,000 400,000 cr. 8,000 20x8 As a result of a review and aging of accounts receivable in early January 20x9, however, it has been determined that an allowance for doubtful accounts of $4,800 is needed at December 31, 20x8. What amount should Stuart record as "bad debt expense" for the year ended December 31, 20x8? (3 marks) (c) Zahn Corp.'s comparative balance sheet at December 31, 20x5 and 20x4, reported accumulated depreciation balances of $800,000 and $600,000 respectively. Property with a cost of $50,000 and a carrying (net book value) amount of $40,000 was the only property sold in 20x5. What is the amount of depreciation expense for 20x5? (3 marks) (d) On June 30, 20x5, the Lanz Corporation purchased 1,600 shares of James Inc. for S36 per share. Dividends and share prices for James for 20x5 and 20xo are as follows: Dividend per Fair Value share paid per Share Dec 31, 20x5 $1.50 $42 Dec 31, 20x6 33