MGA 603 Sample Quiz #3 Professor GU Student Name ________________________ Problem 1. NRP Corp.

reports the following information on its inventories: 2009 Beginning inventory P!r"hases %oo&s available for sale (n&ing inventory Cost of goo&s sol& ? 11, #$ ? ? 13,)1* 200 ? ? ? 3,1)* 11,)*$ 200! 3,0 ? 1$,#'' ? 11,$1*

+etermine the amo!nt of p!r"hases an& the "ost of en&ing inventory for the year of )00*. Please show the steps of yo!r "omp!tation.

Problem ). +!ring a year of &e"reasing pri"es an& &e"reasing inventory, whi"h "ost flow ass!mption wo!l& meas!re the greatest net in"ome, ,-./ or .-./?

Problem 3. 0arrison Corporation p!r"hase& a &!mp tr!"1 at the beginning of )00 at a "ost of 2'0,000. 3he tr!"1 ha& an estimate& life of # years an& an estimate& resi&!al val!e of 2#,000. /n 4an!ary 1, )010, the "ompany ma&e ma5or repairs of 23,000 to the tr!"1 that e6ten&e& its life ) more years 7the resi&!al val!e remains the same8. 3he "ompany !ses the straight9line &epre"iation metho&. 718 0ow m!"h is the net boo1 val!e of the tr!"1 on the "ompany:s balan"e sheet at the en& of )00;?

7)8 <hat is the amo!nt of &epre"iation e6pense in year )010?

738 3he "ompany sol& the tr!"1 for 2)0,000 at the en& of year )010. <hat is the amo!nt of gain or loss from the sale?