IC MU ho significant costs of disposal. il Win a quoted price applicable to all
ID: 2595704 • Letter: I
Question
IC MU ho significant costs of disposal. il Win a quoted price applicable to all quantities, 36. Which of the following transactions would require the use of the present value of an annuity due concept in order to calculate the present value of the asset obtained or liability owed at the date of incurrence? A) A capital lease is entered into with the initial lease payment due one month subse- quent to the signing of the lease agreement. B) A ten-year 8% bond is issued on January 2 with interest payable semiannually on o July 1 and January 1 yielding 99%. (CY A capital lease is entered into with the initial lease payment due upon the signing of the lease agreement. D) A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 7%. 37. Which of the following items should be included in a company's inventory at the bulance sheet date? A) Goods received from another company for sale on consignment. B) Goods sold to a customer which are being held for the customer to call for at his or her convenience. O Goods in transit which were purchased f.o.b. destination. D) None of these answer choices are correct. 38. Turner Corporation acquired two inventory items at a lump-sum cost of S120,000. The acquisition included 3,000 units of product LF, and 7,000 units of product 1B. LE normally sells for $30 per unit, and 1B for $10 per unit. If Turner sells 1,000 units of LF, what amount of gross profit should it recognize? A) $7,500. B) S20,000. C) $24,500. D) $2,500Explanation / Answer
36) B and D
37) A
38)
Sales price = 30*1000 = 30000
Cost of goods sold = (30000/3000) *1000 = 10000
Gross Profit = 30000 - 10000 = 20000
Answer is B