Using the following choices (A, B or C), identify the appropriate treatment in the Inventory account of XYZ Companys balance sheet for each of the following costs incurred by XYZ Company:

Choices: A. Included as an increase to the value of inventory. B. Included as a decrease to the value of inventory. C. Not included in the value of inventory (it is not relevant or is treated as operating or selling expense).

Example: Amount paid for Inventory __A__

Transportation in (i.e., freight-in paid for goods purchased) _____ Transportation out (i.e., freight-out paid for goods sold) _____ Purchase discount on goods (assume XYZ paid AFTER discount date) _____ Purchase discount on goods (assume XYZ paid BEFORE discount date) _____ Cost of tariff for goods purchased _____ Advertising expense to generate sales of goods _____