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Accounting multiple choice: inventory, gain or loss, goodwill

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Accounting multiple choice: inventory, gain or loss, goodwill

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1) The cost in inventory is everything that the company incurred to get the products, thus freight, invoice price and goods on consignment are all part of the inventory cost, this income tax is not.

2) 2001: the inventory was underpriced by 5000, thus the real cost of inventory is 59,000.
Therefore, net sales is now 31,000 and income is now 16, ...

Solution Summary

For each of the five multiple choice questions, the solution gives a sentence or two of explanation including the correct response.

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