The following data apply to a unit of inventory:

Selling price

$22

Selling cost

2

Normal profit margin

5

Replacement cost

10

Using the lower of cost or market (LCM) method of measuring LIFO basis inventory, what is the market amount for this unit of inventory?

Reed, Inc., began operations on January 1. The following information pertains to Reed's December 31 securities:

Trading

Available-for-Sale

Cost

$360,000

$550,000

Fair value

320,000

450,000

Lower of cost or fair value

applied to each security

304,000

420,000

If the declines are judged to be temporary, what amounts should Reed report for its trading and available-for-sale securities in the assets section of its December 31 balance sheet?

The following information pertained to Azur Co. for the year:

Price of goods purchased

$102,800

Price discounts

10,280

Freight-in

15,420

Freight-out

5,140

Beginning inventory

30,840

Ending inventory

20,560

What amount should Azur report as cost of goods sold for the year?

In Year 5, Lee Co. acquired, at a premium, Enfield, Inc., 10-year bonds as a long-term investment. At December 31, Year 6, Enfield's bonds were quoted at a small discount. Which of the following situations is the most likely cause of the decline in the bonds' fair value?

Herc Co.'s inventory at December 31, Year1, was $1.5 million based on a physical count priced at cost, and before any necessary adjustment for the following:

• Merchandise costing $90,000 was shipped FOB shipping point from a vendor on December30, Year1, and was received and recorded on January5, Year2.
• Goods in the shipping area were excluded from inventory although shipment was not made until January4, Year2. The goods, billed to the customer FOB shipping point on December30, Year1, had a cost of $120,000.

What amount should Herc report as inventory in its December 31, Year1, balance sheet?

Dell Company's inventory at December 31, Year1, was $1.2 million based on a physical count of goods priced at cost, and before any necessary year-end adjustments relating to the following:

• Included in the physical count were goods billed to a customer FOB shipping point on December 30, Year1. These goods had a cost of $25,000 and were picked up by the carrier on January 7, Year2.
• Goods shipped FOB shipping point on December 28, Year1, from a vendor to Dell were received on January 4, Year2. The invoice cost was $60,000.

What amount should Dell report as inventory in its December 31, Year1, balance sheet?

Pal Corp's current year dividend income included only part of the dividend received from its Ima Corp. investment. The balance of the dividend reduced Pal's carrying amount for its Ima investment. This reflects the fact that Pal accounts for its Ima investment by the

The following data apply to a unit of inventory: Selling price $22 Selling cost 2 Normal profit margin 5 Replacement cost 10 Using the lower of cost or market (LCM) method of measuring LIFO basis inventory, what is the market amount for this unit of inventory? Reed, Inc., began operations on January 1. The following information pertains to Reed's December 31 securities: Trading Available-for-Sale Cost $360,000 $550,000 Fair value 320,000 450,000 Lower of cost or fair value applied to each security 304,000 420,000 If the declines are judged to be temporary, what amounts should Reed report for its trading and available-for-sale securities in the assets section of its December 31 balance sheet? The following information pertained to Azur Co. for the year: Price of goods purchased $102,800 Price discounts 10,280 Freight-in 15,420 Freight-out 5,140 Beginning inventory 30,840 Ending inventory 20,560 What amount should Azur report as cost of goods sold for the year? In Year 5, Lee Co. acquired, at a premium, Enfield, Inc., 10-year bonds as a long-term investment. At December 31, Year 6, Enfield's bonds were quoted at a small discount. Which of the following situations is the most likely cause of the decline in the bonds' fair value? Herc Co.'s inventory at December 31, Year 1, was $1.5 million based on a physical count priced at cost, and before any necessary adjustment for the following: Merchandise costing $90,000 was shipped FOB shipping point from a vendor on December 30, Year 1, and was received and recorded on January 5, Year 2. Goods in the shipping area were excluded from inventory although shipment was not made until January 4, Year 2. The goods, billed to the customer FOB shipping point on December 30, Year 1, had a cost of $120,000. What amount should Herc report as inventory in its December 31, Year 1, balance sheet? Dell Company's inventory at December 31, Year 1, was $1.2 million based on a physical count of goods priced at cost, and before any necessary year-end adjustments relating to the following: Included in the physical count were goods billed to a customer FOB shipping point on December 30, Year 1. These goods had a cost of $25,000 and were picked up by the carrier on January 7, Year 2. Goods shipped FOB shipping point on December 28, Year 1, from a vendor to Dell were received on January 4, Year 2. The invoice cost was $60,000. What amount should Dell report as inventory in its December 31, Year 1, balance sheet? Pal Corp's current year dividend income included only part of the dividend received from its Ima Corp. investment. The balance of the dividend reduced Pal's carrying amount for its Ima investment. This reflects the fact that Pal accounts for its Ima investment by the