Which of the following types of interest cost incurred in connection with the

Which of the following types of interest cost

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53.Which of the following types of interest cost incurred in connection with the purchase or manufacture of inventory should be capitalized as a product cost? a.Purchase discounts lostb.Interest incurred during the production of discrete projects such as ships or real estate projectsc.Interest incurred on notes payable to vendors for routine purchases made on a repetitive basisd.All of these should be capitalized. 54.The use of a Discounts Lost account implies that the recorded cost of a purchased inventory item is its 55.The use of a Purchase Discounts account implies that the recorded cost of a purchased inventory item is its Use the following information for questions 56 and 57.During 2010, which was the first year of operations, Oswald Company had merchandise purchases of $985,000 before cash discounts. All purchases were made on terms of 2/10, n/30. Three-fourths of the items purchased were paid for within 10 days of purchase. All of the goods available had been sold at year end. 56.Which of the following recording procedures would result in the highest cost of goods sold for 2010?1.Recording purchases at gross amounts2. Recording purchases at net amounts, with the amount of discounts not taken shown under "other expenses" in the income statement 57.Which of the following recording procedures would result in the highest net income for 2010?1. Recording purchases at gross amounts2.Recording purchases at net amounts, with the amount of discounts not taken shown under "other expenses" in the income statement a.1b.2c. Either 1 or 2 will result in the same net income. d. Cannot be determined from the information provided.
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Test Bank for Intermediate Accounting, Thirteenth Edition8 - 14 58.When using the periodic inventory system, which of the following generally would notbe separately accounted for in the computation of cost of goods sold? S
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