The input cost changes that occur after the purchase of inventory items in a current cost accounting system are recognized as

Multiple Choice

• realized gains and losses.

• costs of goods sold.

• unrealized holding gains and losses.

• extraordinary gains and losses.

On January 2, 20X1, Jensen Corporation sells equipment it manufactured to Lewisburg Fabricators in exchange for an $80,000 note due in five years. The note bears no stated interest rate, but requires the entire $80,000 to be repaid at the end of five years. Jensen recently sold the same equipment to another company for $54,447. When Lewisburg Fabricators sought bank financing for this purchase the company was offered the funds at 8%, but decided to let Jensen hold the note.

What will be the balance in the Notes ReceivableLewisburg Fabricators account at the end of 20X2?

Multiple Choice

• $80,000

• $54,447

• $63,507

• $58,802