Watsontown Yacht Sales has been selling large power cruisers for 25 years. On January 1, 20X1, the
Question:
Watsontown Yacht Sales has been selling large power cruisers for 25 years. On January 1, 20X1, the company had $5,950,000 in inventory (based on a FIFO valuation). While the number of yachts in Watsontown Yacht Sales’s inventory remained fairly constant throughout 20X1, by December 31, 20X1, yacht prices were 7% higher than at the start of the year. The company reported cost of goods sold for 20X1 of $23,800,000.
Required:
Calculate the amount of realized holding gains in Watsontown Yacht Sales’s income for 20X1.
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Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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