On July 10, 2016, Johnson Corporation signed a purchase commitment to purchase inventory for $370,000 on or before February 15, 2017. The company's fiscal year-end is December 31. The contract was exercised on February 1, 2017 and the inventory was purchased for cash at the contract price. On the purchase date of February 1, the market price of the inventory was $375,000. The market price of the inventory on December 31, 2016, was $350,000. The company uses a perpetual inventory system.

How much loss on purchase commitment will Johnson recognize in 2016?

$5,000.

$20,000.

$25,000.

None.

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On July 10, 2016, Johnson Corporation signed a purchase commitment to purchase inventory for $206,000 on or before February 15, 2017. The company's fiscal year-end is December 31. The contract was exercised on February 1, 2017, and the inventory was purchased for cash at the contract price. On the purchase date of February 1, the market price of the inventory was $216,000. The market price of the inventory on December 31, 2016, was $183,000. The company uses a perpetual inventory system.

At what amount will Johnson record the inventory purchased on February 1, 2017?

$183,000

$216,000

$206,000

$193,000

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Haskell Corporation has determined its year-end inventory on a FIFO basis to be $793,000. Information pertaining to that inventory is as follows:

Selling price	$817,000
Costs to sell	39,000
Replacement cost	769,000

What should be the reported value of Haskells inventory if the company prepares its financial statements according to International Financial Reporting Standards (IFRS)?

$793,000.

$769,000.

$704,000.

$778,000.

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Haskell Corporation has determined its year-end inventory on a FIFO basis to be $793,000. Information pertaining to that inventory is as follows:

Selling price	$817,000
Costs to sell	39,000
Replacement cost	769,000

What should be the reported value of Haskells inventory if the company prepares its financial statements according to International Financial Reporting Standards (IFRS)?

$793,000.

$769,000.

$704,000.

$778,000.