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The following information is available for October for Barton Company. Beginning inventory $150,000 Net purchases 450,000 Net sales 900,000 Percentage markup on sales 40.0% A
The following information is available for October for Barton Company. Beginning inventory $150,000 Net purchases 450,000 Net sales 900,000 Percentage markup on sales 40.0% A fire destroyed Barton's October 31 inventory, leaving undamaged inventory with a cost of $9,000. Using the gross profit method, the estimated ending inventory destroyed by fire is $60,000. $231,000. $51,000. $240.000. On February 1, 2014, Nelson Corporation purchased a parcel of land as a factory site for $250,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2014. Costs incurred during this period are listed below: Demolition of old building $ 20,000 Architect's fees 35,000 Legal fees for title investigation and purchase contract 5,000 Construction costs 1.290.000 (Salvaged materials resulting from demolition were sold for $10,000.) Nelson should record the cost of the land and new building, respectively, as $275,000 and $1.315.000. $260.000 and $1.325,000. $265.000 and $1.325.000. $260.000 and $1.330.000
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