Question: Help ASAP please! Company B signed a contract to be executed in 2022 at a price of $1,200,000. The market price of the inventory increased

Help ASAP please!

Company B signed a contract to be executed in 2022 at a price of $1,200,000. The market price of the inventory increased to $1,300,000 at the end of 2020. How much gain or loss should the company record on its books?

Group of answer choices below

No entry needed

$100,000 unrealized holding gain, which affects the income statement

$100,000 unrealized holding loss, which affects the income statement

$100,000 unrealized holding gain, which affects the balance sheet

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Please help with the assignment is due in an hour (2) Complete design and simulati x C Search Textbook Solutions | Ches X WhatsApp 2020_ACC300_S3BCTO2_FI_ACTIV X + c File...

QUESTION 2 (40 marks) (48 minutes) The following balances were extracted from the books of Ngcobo Ltd for the financial year ended 29 February 2021: R Total sales (including VAT at 15%) (note 1) 2...

x + c X O FINANCIAL ACC BADASS 1 x XE AMF 2871 Assignment 202 x 2022 Distance Assignments x Gripping GAAP 2020_nod X Group Statements Volume x X Group Statements Volume c File...

You are a first-year trainee accountant at Dynamic Auditors, and part of the team currently engaged in the external audit of Hofstein Ltd, a listed company. Hofstein holds a 51% interest in Retailers...

Scenario: You are a top-notch compensation administration consultant hired by the Alliston Instruments. They are impressed by your suggestions you had provided in mid-review report. After analyzing...

Why is primus Automation considering the lease of its factory-automation system to Avantjet? How did Tom Baumann analyze the problem of setting the lease-financing terms? How does the calculate NPV...

171 100% + i Case (1).pdf Coke versus Pepsi Case study: Please note that even though it is a team exercise, and you will be tempted to divide and conquer, it is extremely important that every member...

Morning Star Ltd was registered on 1 July 2021, as a company with a constitution limiting the shares that could be offered to 5 000 000 Ordinary shares (including all classes) and 2 000 000...

The 10 critical success factors have been applied in a variety of settings and project types. Consider a project with which you have been involved. Did any of these factors emerge clearly as being...

On September 26th, 2019, the Shariah Advisory Council (SAC) of the Securities Commission Malaysia revised its resolution on Asset Pricing Requirements for Sukuk Issuance, and resolved the following:...

The valuation of an MNC should fall when an event causes the foreign currencies denominating these cash flows to _ _ _ _ . Group of answer choices appreciate displays volatilities depreciate increase...

Developer M. T. Lott exchanges his current office building, which has an adjusted basis of $602,000 (with a fair market value of $596,000), for land--held for investment purposes--which has a fair...

What steps would you recommend that a department supervisor take before laying off employees? Why?

What are the principal advantages and disadvantages to an organization in implementing a voluntary early retirement program?

In your opinion, should a general layoff be implemented at one time or over a period of weeks or months? Why?