At December 31, 2017, the following information was available from Kohl Co.\'s a

Question

At December 31, 2017, the following information was available from Kohl Co.'s accounting records: 5. Inventory, 1/1/17 Purchases $147,000 833,000 $ 203,000 1,155,000 Additional markups Available for sale $1.400,000 Sales for the year totaled $1,250,000. Markdowns amounted to $10,000. Under the lower- of-cost-or-market method, Kohl's inventory at December 31, 2017 was a. $294,000. b. $112,000. c. $105,000. d. $98,000. 6, A depreciable asset has an estimated 15% salvage value. At the end of its estimated useful life, the book value would equal the salvage value of the asset under which of the following depreciation methods? Productive Output b. C. d. Straight-line Yes Yes No No No Yes Yes No When a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly measured by the a. market value of the stock. b. stated value of the stock c. book value of the stock. d. par value of the stock.

Explanation / Answer

Solution:-

5. d. $ 98,000

Explanation:-

Cost to Retail ratio: $980,000 ÷ $1,400,000 = 0.7

Ending inventory at retail: ($1,400,000 – $10,000 – $1,250,000) =$140,000

Ending inventory at cost: $140,000× 0.7 = $98,000.

6. d. No No

Explanation:-

The accumulated depreciation will not equal original cost at the end of the asset's estimated useful life because of Salvage Value : is subtracted from the cost of a fixed asset to determine the amount of the asset cost that will be depreciated

so answer will be :   no , no

7. a. Market value of the stock.

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