answer al questions

1. On July 8, a fire destroyed the entire merchandise inventory on hand of Smith Wholesale Corporation. The following information is available:

Sales, January 1 through July 8	$	700,000
Inventory, January 1		130,000
Purchases, January 1 through July 8		660,000
Gross profit ratio		40	%

What is the estimated inventory on July 8 immediately prior to the fire?

A) $192,000.

B) $370,000.

C) $510,000.

D) $280,000.

3. Under the retail method, the denominator in the cost-to-retail percentage does not include:

A) Purchases.

B) Purchase returns.

C) Abnormal shortages.

D) Freight-in.

4. Davids Clothing started business January 1, 2021, and uses the LIFO retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2021:

	Cost					Retail
Beginning inventory	$	15,000					$	23,000
Purchases		49,000						78,000
Freight-in		2,500
Purchase returns		1,700						2,600
Net markups								2,000
Net markdowns								4,100
Net sales								70,600
Employee discounts								700

The numerator for the current period's cost-to-retail percentage is:

A) $64,800.

B) $47,700

C) $48,100

D) $49,800.

16.On January 1, 2021 Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2022. Expenditures on the project were as follows:

January 1, 2021	$	200,000
September 1, 2021	$	300,000
December 31, 2021	$	300,000
March 31, 2022	$	300,000
September 30, 2022	$	200,000

Larry l borrowed $750,000 on a construction loan at 12% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,500,000 in 9% bonds payable outstanding in 2021 and 2022.

Average accumulated expenditures for 2022 was:

A) $536,000.

B) $1,036,000.

C) $1,200,000.

D) $1,236,000.

18.When one company acquires another company, any acquired "developed technology" is recorded as:

A) Finite-life intangible asset.

B) Property, plant, and equipment.

C) Research and development expense.

D) Indefinite-life intangible asset.