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Calculate the cost of inventory reported on the balance sheet.
A) the total merchandise on hand at the end of the year as determined by taking a physical inventory is $62,000, $8,000 has been sold FOB destination and is awaiting pickup by the carrier.
B) the total merchandise inventory counted at the end of the year was $63,000. Purchases for $6.000 are in transit under FOB shipping point terms.
C) the total merchandise inventory counted at the end of year was $75,000. Purchases for $5000 are in transit under FOB destination term.
Three years ago, Irene and Julie formed Hummingbird Corporation. Each transferred property to Hummingbird in exchange for 50 shares of its stock. In the current year, Jaime transfers property worth $600,000 (basis of $90,000) for 50 shares (a one-thi..
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