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Unformatted text preview: False - there may be some changes within the company or regulations that will cause a change in a method. Also when changing methods you need to show exactly the change of method. Exercise 1-8 1. Plant and equipment are carried at an amortized cost on a straight -line basis of $1,500,000. Historical cost 2. Bonds with a maturity price of $2,000,000 and interest in arrears of $500,000 are reported as a concurrent liability. Current market value 3. Accounts receivable are carried at $700,000, the gross amount charged for sales. No allowance for doubtful accounts is reported. Net realizable 4. The reported LIFO cost of inventory is $300,000. Current replacement cost 5. Investments in a subsidiary company are recorded at initial cost plus undistributed. Present value...
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This note was uploaded on 05/29/2011 for the course EC 2011 taught by Professor Johnson during the Spring '11 term at FIT.
- Spring '11