Calculate the holding gain

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Question

Assume that an entity acquired 150 items of inventory at a cost of $10 each and sold 100 of the items for $15/each when the replacement cost to the entity was $12 each. Assume also that the replacement cost of the 50 remaining items of the inventory at year end was $14.

a. Calculate the holding gain.

b. Determine the realized holding gain and the unrealized holding gain.

Reference no: EM132322324

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