Question 1

Coastal Shores Inc. (CSI) was destroyed by Hurricane Fred on August 5, 2016. At January 1, CSI reported an inventory of $170,000. Sales from January 1, 2016, to August 5, 2016, totaled $480,000 and purchases totaled $195,000 during that time. CSI consistently marks up its products 35% of Sales. The estimated inventory loss due to Hurricane Fred would be:

Question 2

On July 8, a fire destroyed the entire merchandise inventory on hand of Larranaga Wholesale Corporation. The following information is available:

Sales, January 1 through July 8	$	800,000
Inventory, January 1		130,000
Purchases, January 1 through July 8		740,000
Gross profit ratio		70	%

What is the estimated inventory on July 8 immediately prior to the fire?

Question 3

On July 1, 2016, Ahmed Corporation Purchased Factory Equipment for $600000. Salvage value was estimated to be $16000. The equipment will be depreciated over ten years using the Double-declining balance method. Ahmed Should record depreciation expense for 2017 on this equipment of