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    © All Rights Reserved
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    22 views8 pages

    Acctg 105 - PS 1 - Financial Statements

    Uploaded by

    aaron manacap
    Governance

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 8
    -MULTIPLE-CHOICE QUESTIONS (1-81) 1. In Baer Food Co.'s 2003 single-step income statement, the section titled "Revenues" consisted ofthe following: Net aes eveme sis7.000 ‘Results tom daconinud operans Tos em discotinied component Zin tludng fs o disposal of 1.200 Sinan eset bene ‘om (12400) eres eveoue 10300 Gain on sa of equipment 40 Galt change 211 ar 202 nee deo change is deprecation method (nt of Sian eftect si ‘Tua venues sion In he revenves section ofthe 2003 income statement, Baer Food should have reported total revenues of ‘a $216,300 b. $215.00 $203,700 $201,900 Items 2 and 3 ate based on te following: ‘Vane Co.'s rial balance of income statement accounts for the year ended December 31, 2004, included the following: Debt Cade Saks sso Cont sks 20.09 Coe ona of equipment 10,000 Saks comission: sin Inert revenve 25000 UUnton ety retiement of long-term det 2000 Uncle scooes expense is Toals siz0000 00000 ter information Fiche gos incniry Sanuary 1.2001 ston.000 Doers 3,208 e000 ‘Vane's income tax rate is 30%, In Vanes 2004 mltiple- sep income statement, 2, Whar amount should Vane reports the cost of goods janufactured? ‘a. $200,000 b. $215,000 $280,000 dd, $205,000 3. Whar amount should Vane report a it ‘ome taxes from continuing operations? ‘a. $126,000 b. $129,500 $140,000 4. $147,000 4. Brock Corp. reports operating expenses in two eatexo- ries: (1) selling, and (2) general and administrative. The adjusted ial balance at December 31, 2003, included the following expense and loss aevounts Accouting and egal ees siz0000 Advesne 150.000 Freight 0000 Tere m0 [sto ae of long-term investnent 000 Offer salaries 2000 Rent or fice space 20m Sas saris an eommissions Ho00 ‘One-half ofthe rented premises is occupied by the sales department Brock’s total selling expenses for 2003 are a $480,000 b. $400,000 © $370,000 $360,000 5. The following costs were incurred by Griff Co, a ‘manufacturer during 2008: Accounting and eal ees 8.25000 Fraghtin iso Freigivout ‘co.000 ‘ces alas 150.000 Sales epesentatives slates 218000 ‘What amount ofthese costs shouldbe reported as general tnd administrative expenses for 20037 ‘a. $260,100 $550,000 $635,000 $810,000 6. Which of the following should be included in general and administrative expenses? a Yes Yes bo Yes No © No Yes 4 No No 7. In Yew Co.'s 2003 annual report, Yew described its social awareness expenditures during the year as follows “The Company contributed $250,004 in cash to youth and educational programs. The Company also gave $140,000 to health and human service organizations, of ‘which $80,000 was contributed by employees through payroll deductions. In addition, consistent withthe ‘Company’s commitment o the environment, the Con ‘pany spent $100,000 to redesign product packaging What amount of the above should be included in Yew's income statement as charitable conibutions expense? a. $310,000 b. $390,000 $410.00 $390,000 8. During 2003 both Raim Co, and Cane Co. suffered losses due tothe looding ofthe Mississippi River. Raim is located two miles from the river and sustains flood losses every to to three years. Cane, which has been located fifty miles from the river forthe past enty years, has never before had flood losses. How should the flood losses be reported in each company's 2003 income statement” ——_Raim Cane 1. Acacomponcntof Avan extraordinary em income from continuing operations b. Atscomponentof Ax acomponent of ineome income from continuing. from continuing opers- operations tions ©. A¥anextraordinary item Asa component of income from continuing opera 4. Asamextraordinary item Asan extroedinary tem 9. Witt Co, incurred the following infrequent losses during 2003: + $175,000 from a major strike by employees + $150,000 from an earthquake (unusual. + $125,000 from the abandonment of equipment used in the business In Wits 2003 income statement, the total amount of inf ‘quent losses not considered extraordinary should be a. $275,000 b. Si00000 fe. $325,000 4d, $450,000 10, Kent Co, incurred the following infroquent losses dur- ing 2003, ‘+ $300,000 loss was incurod on disposal of one of four dissimilar factories +A major eurency devaluation caused « $120,000 ex- ‘change loss on an amount remitted by a foreign customer + Tnventory valued at $190,000 was made worthless by ‘competitor's unexpected produit innovation. In its 2003 income statement, what amount should Kent report as losses that are not considered extraordinary? a $610,000 b. S490.000 $420.00 4d. $310,000 11. Midway Co, had the following tans 2003) ‘+ $1,200,000 pretax loss on foreign currency exchange due toa major unexpected devaluation by the foreign govern ‘$500,000 pretax loss from discontinsed operation of division + S80,000 pretax Loss on equipment damaged hy a hur ricane, This was the first hurricane ever to strike in Midway's area, Midway also received $1,000,000 from its insurance ‘Company to replace a building, with acarying value of $30,000, that ha been destoyed by the hurricane ‘What amount should Midway report in its 2003 income slatement as extriondinary loss before income taxes? a $100,000 tions during b. $1,300,000 $1,800,000 d._$2,500,000 12, Ocean Corp.'s comprehensive insurance policy allows its assets to be replaced at eurrent value. ‘The policy has 4 $850,000 deductible clause. One of Ocean's waterfront houses was destroyed in a winter storm. Such storms ‘cur approximately every four years. Ocean incurred $20,000 of costs in dismanting the warehouse and plans to replace it. The following data relate to the warehouse: (Curent carrying mount 300.000 Replacement cont "0.000 ‘What amount of gain should Ovean report asa separate component of income before extraordinary items? ‘a $1,030,000 b. $780,000 $730,080 30 13, Purl Corporation's income statement for the year ended December 31,2003, shows the following: Income Before income a and extoinary ier $900.00 Gain on ie nsrance overages the hove SID scare anit 1.00 Extranriary emo de earthquake damage 308000 Pr! tax rate for 2003 is 40%, How much should bere ported a the provision for income tax in Puts 2003 income Statement? a. $200,000 b. $240,000 ec. $320,000 «d. $360,000 14, ‘Thorpe Co.'s income statement forthe year ended De- cemiber 31, 2004, reported net income of $74,100. The auditor raised questions about the following amounts that hha been included in net income: ‘nwealied os on dein in market valu of once in vestmitm stock clas x ‘lol foe ae et tx) (5.400) Cin oneayetenet of bod payable (at of SI 1LO00 teat) 22.000 Adjustment prt of prio eas for eosin epecation (et of $3.75 tax fleet) 50) Ls ram ire pt of 700 tee) 18000) “The loss from the fire was an infequent but not unusual ‘occurrence in Thorpe’s line of business, Thorpe's Decem: bber 31, 2004 income statement should report net income of a. $65,000 b. $66,100 ©. $81,600 $8700 15, On January 1, 2003, Brecon Co. installed eahinets to display is merchandise in customers" stores. Brecon ex- pects tose these cabinets for five years. Brecon’s 2003 ‘multi-step income statement should include 4, One-fifth of the cabinet costs in cost of goods sold. by. One-fifth ofthe cabinet costs in selling, general, and administrative expenses ‘&. Allof the cabinet costs in eos of good sold 44. Allof the cabinet costs in selling, general, and ad. ‘ministrative expenses 16, A material loss should be presented separately as a {component of income from continuing operations when it is 1a. Anextraordinary item, b, A cumulative-effect-type change in accounting principle ‘e. Unustal in nature and infrequent in occurrence. 4d, Not unusual in nature but infrequent in occurrence. 17. During 2003, Peg Construction Co. recognized substan- ‘ial gains from + Aninerease in value ofa foreign customers emit tance caused by a major foreigh currency revaluation +A court-ordered increase ina completed long-term construction contract's price due to design changes ‘Should these gains be ineluded in continuing operations oF ‘reported as an extraordinary item in Pep’s 2003 income statement? Gain from major Gain from increase ‘ncomtract’s price Continuing operations ‘Continuing operations Extraordinary item Extraordinary item ‘Continuing operations Extrordinary item Extraordinary item ‘Continuing operations 18, An extraordinary item should be reported separately on the income statement as a component of income Before discontinued operations Netofimeome tres — obacomponent ofa business a Yee Yes b Yes No © No No. ‘ No Yes 19. In 2003, hail damaged several of Toncan Co.’s vans. Hailstorms had frequently inflicted similar damage to Ton- ccan’s vans. Over the years, Toncan had saved money by not buying hal insurance and either paying for repairs, o selling ‘damaged vans and then replacing them. In 2003, the dam- aged vans were sold fr less than their carrying amount. How should the hail damage cost be reported in Toncan’s 2003 Financial statements? ‘a. The actual 2003 hail damage loss as an extraedi- nary los, net of income taxes 'b. The actual 2003 hail damage loss in continuing op- erations, with no separate disclosure €.Theexpected average hail damage loss in continu ing operations, with no separate disclosure 4. The expected average hail damage loss in continu ing operations, with separate disclosure. 20, A transaction that is unusual in nature and infrequent in ‘occurrence should be reported separately as a component of| 4, After cumulative effect of accounting changes and before discontinued operations, '. Afr cumulative effect of accounting changes and alter discontinued operations. Before cumulative effect of accounting changes ‘and before discontinued operations, 4. Before cumulative effect of accounting changes and after discontinued operations 2A, In 2003, Teller Co. inured losses arising from its ‘uilty plea in its frst antitrust action, and froma substantial increase in production costs caused when | major suppl workers went on strike. Which ofthese losses should be reported as an extraordinary item? Antitnustaction Production cosis a No No b No Yes . Yes No d Yes Yes 22, In open market transactions, Gold Corp. simultaneously Sold its long-term investment in Ion Corp. bonds and put- chased ils awn outstanding bonds, The broker remitted the net cash from the two transactions. Gold's gain on the pure chase of its own bonds exceeded is loss onthe sale of the Tron bonds. Gold shoud report the a Noteffect of the Wo transactions as an extra nary gain bb, Netefect of the wo wansaetions in incon extraordinary items Effect ofits ovvn bond transaction gun in income before extraordinary items, and report the Iron bond transaction asa loss in income before extra- ‘ordinary items, 4. Effect of its own bond transaction as an extraordi- rary gain, and report the Iron bond transaction loss income before extraordinary items before 23, Under SFAS 130, Reporting Comprehensive Income, ‘onections of errors are reported in « & ‘Other comprehensive income, Other income/(expense). Retained earnings Stockholders’ equity 24, Service Corp. incurred costs associated with relocating employees in a restructu ng ofits operations. How should ‘the company account for these costs? “Measured at fair value and recognized over the next two years “Measured at fair value and ability is incurred Recognized when the cos ae pad. “Measured at fair value and treated as a prior period adjustment eognized when the 25. On January 1, 2003, Deer Corp. met the criteria for “discontinuance of business component. For the period January | through October 15, 2003, the component had revenues of $500,000 and expenses of $800,000. The assets of the component were sold on October 15, 2003, at a loss for which no tax benefit is available. In its income state :ment forthe year ended December 31, 2003, how should Deer report the component's operations om January | 10 (ctober 15,2003? $300,000 and $800,000 should be included with revenues and expenses, respectively, as part of continuing operations. $300,000 should be reported as part ofthe loss on ‘operations and disposal of a component $300,000 should he reported as an extraordinary loss $500,000 should be reported as revenues from op: erations ofa discontinued component 26. Which ofthe following eiteria is not required for a {components results to be classified a discontinued opera- “Management must have entered into a sales agree~ The component is available for immediate sale, The operations and cash flows ofthe component Will be eliminated from the operations of the entity asa result of the disposal Te entity will not have any significant continuing avolvement inthe operations of the component alter disposal 27. On November 1, 2003, management of Herron Corpo. ‘ation committed toa plan to dispose of Timms Company, a major subsidiary. ‘The disposal meets the requirements for classification a discontinued operations. The carrying Value of Timms Company was $8,000,000 and management estimated the fair valueless cost to ell tobe $6,500,000. For 2003, Tin Company haul a loss of $2,000,000. How ‘much should Herron Corporation present a8 Toss from dis- continued operations before the elfect of taxes in its income Statement for 2003? 5 4 30 $1,500,000 $2,000,000 $3,500,000 28. On December 1, 2003, Greer Co. committed toa plan to Uispose ofits Hart business components asses. The dis- posal meets the requirements tobe classified as discontinued ‘operations, On that date, Greer estimated thatthe loss from the: disposition ofthe asets would be $700,000 and Harts 2003 operating losses were $200,000, Distegardag income taxes, what net gain (oss) should be reported for discontin- ted operations in Greer's 2003 income statement? a $0 b. $(200,000) $700,000 (900,000) 29. component of Ace, Inc. was discontinued during 2004. Ace's loss on disposal should ‘4. Exclude the associated employee relocation costs. b. Exclude operating losses fr the period. Include associated employce termination costs. 4d. Exclude associated lease cancellation cots, 30. When a component of a business has been discontinued ‘during the year, this component’ operating loses othe ‘curent period should be included i the ‘4, Income statement as part of revenues and ex- penses b, Income statement as part ofthe loss on disposal of the discontinued component «©. Income statement as part of the income (loss) from ‘continuing operations. 4d. Retained earings statement as a direct decrease in retained earnings. SL. When a component of «business has been discontinued {during the year, the loss on disposal should 44, Include operating losses ofthe curent perio, b. Exclude operating losses duis Bean extraonlinary item dB an operating item, 32. On January 1, 2004, Shine Co, agreed to sell a business ‘omponent on March 1, 2004, The gain on the disposal should be ‘a, Presented as an extraordinary gain b. Presented as an adjustment to retained earnings . Netted with the loss from operations ofthe compo- ‘nent asa part of discontinued operations, 4d. None af the above, 33. What is the purpose of reporting comprehensive in- ‘8. Toreport changes in equity due to transactions with owners. b, To report a measute of overall enterprise pesform- «. Toreplace net income with a biter mesure 4 To.cambine income from continuing operations ‘with income from discontinued operations and ex- ttaondinary items, 3M. During 2003, the “other revenues and gains section of| ‘Toiman Company's Statement of Earnings andl Compreben sive Income contains 85.000 in interest revenue, $15,000 ‘equity in Harpo Co, earnings, and $25,000 gain onsale of available-for-sale securities. Assuming the sale ofthe secu ities inereased the current portion of income tax expense by $10,000, determine the amount of Totman's reclassification adjustment to other comprehensive income. a $5000 b. $2500 $35,000 $15,000 35. Which ofthe following is not an acceptable option of Teporting other comprehensive income and its components? ‘4. Ina separate statement of comprehensive income. bb. Ima statement of earings and comprehensive in Inthe footnotes Ina statement of changes in stockholders’ equity 36, Accumulated other comprehensive income should be ‘reported on the balance sheet as a component of Retained earings Additional paid-in capital a No Yes b Yes Yes ¢ Yes No d No No 37, Which ofthe following changes during a period is wot 8 ‘component of ether comprehensive income? ‘4. Unrealized gains or losses asa result of a debt se- curity being transferred from held-o-maurity 10 available-for-sale, bb. Stock dividends issued to shareholders, Foreign currency translation adjustments, Minimum pension ability adjustments, 38. A company buys ten shares of securities at $2,000 each ‘on December 31, 2001. ‘The securities are classified as available fr sale, The fair value of the securities increases $2,500 on December 31, 2002, and o $2,750 on Decem her 31,2003, On December 31,3003, the company sells the securities, Assume no dividends are paid and tht the eom- pany has tax rte of 30%, What is the amount of there classification adjustment for other comprehensive income on Decembor 31, 2003? a. 8 7500 b. $7500) $5250 4d $5250) 39. A company buys ten shares of securities at $1,000 each ‘on January 15, 2003. ‘The securities are classified as available-for-sale, The fait value of the secuities int to $1,250 per share as of December 31,2008. Ass lividends are paid and thatthe company has a 30% tax rate ‘What is the amount ofthe holding gain arising during the period that i classified in other comprehensive income for the period ending December 31, 2003? a0 b. $7,500 © 23300) @ $1750 40. What amount of comprehensive income should Searles ‘Corporation report on its statement of income and compre hensive income given the following net of tax figures that represent changes during a period” Minin ecson aby 8.000) Uelized git om aval forsale ecuies tse Revs ation aust, for secures ain nce et ince son) Sock want uiandng ‘a0 Natincoee naw a $86,500) $89,000) $89,500 $90,500 41. 1F ($2,450) net of tax isthe eclasiicaton adjustment included in other comprehensive income inthe year the se ‘curities are sol, what isthe gain (loss thats ineluded in incom irom continuing operations before income taxes? Assume a 30% ax rate, a S02.450) b. $5300) $2450 $3300 42. Which of the following changes during a period isnot a ‘component of other comprehensive income? 3. Minimum pension liability. Treasury stock, at cost. ce. Foreign currency translation adjustment, 4d. Reclassification adjustment, for securities gain i cluded in net income, 43. Which ofthe following is ue? a. Separate EPS amounts must be presented for both ‘ther comprehensive income and comprehensive b, Separate EPS amounts must be presented for other ‘eomprehensive income but not for comprehensive ‘¢. Separate EPS amounts must be presented for com: prehensive income but not for other comprehensive 4d. Separate EPS amounts are not required to be pre- sented for either other comprehensive income or comprehensive income. 44, Which of the following options for displaying compre= hensive income i(are) preferred by FASB? 1. A continuation from net income atthe bottom ofthe income statement, I, A separate statement that begins with net income TIL Inthe statement of changes in stockholders" equity ak bo fe. Wand and I 4S. Which ofthe following is not classified as other com. prehensive income? a. Annet loss ofan akltional pension lability not yet recognized as net petidie pension cost b. Subsequent decreases of the fair value of available~ forsale securities that have been previously wri ten down as impaired. ‘e. Decreases inthe far Value of held-to-matusity 4d. None ofthe above, 46, When a full et of general-purpose Financial statements ane presented, comprehensive income adits components should Appear asa part of discontinued operations, ex- tusordinary items, and cumulative effect of a change in accounting prisciple. Be reported net of related income tax eect, in to tal and individually Appear in a supplemental schedule in the notes to the financial statements, 4, Be displayed ina financial statement that has the sane prominence as other financial statements, ems 47 through 49 are based on the following: The following tial balance of Mint Corp, at December $1, 2003, has been adjusted except for income tax expense De co cu sino ‘counts ceva, net sono ‘Cat in exces of ilngsonlng- ‘erm conuacte #600000 Billings in exces of cots on lang temo $70.00 Prep snes 50000 Propet, plan and equipment, net 1.48000, Note payable—nonarent san009 Cannon tock “0.000 ‘Adina pain apa 2.000.000 Retained canings-unappeprited 90,00) Retained earings esti foe te paable 160,000 ari Long-term coats 0.000 Susann ‘Cots and expenses sTsiaM | SSTOR00 Other financial data fr the year ended December 31, 2003, are + Mint uses the percentage-of completion method 10 ‘count for long-term construction contacts fr financial statement andl income tax purposes. All eceivables on these contracts ae considered o be collectible within ‘welve + During 2003, estimated tax payments of $450,000 \were charged to prepaid taxes. Mint has not recorded in- come ty expense. ‘There Were no temporary of permanent Aiferences, and Mine's tx rate is 30% In Mint’ December 31,2003 balance shect, what amount should be reported as 47, Tota retained earnings? a $1,950,000 b. S2.110,000 $2:400,000 $2,560,000 48. Total noncurrent ibiities? a $81,620,000 b. $1,780,000 “$2,320,000 $2,480,000 49, Total current assets? $5,000,000 b. $5,450,000 © $5.700,000 $6,150,000 50. Mire Ine. was incorporated on January 1, 2003, with proceeds from the issuance of $750,000 in stock and bo: rowed funds of $110,000, During the first year of oper- tions, revenues from sales and consulting amounted to 382,000, and operating costs and expenses totaled $64,000, (On December 15, Mir declared a $3,000 cash dividend, payable to stockholders on January 15, 2004, No additional activities affected owners” equity in 2003. Min’ liabilities, increased to $120.0) by December 31, 2003, On Mirr's December 31, 2003 balance sheet, tots! assets should be reported at ‘a. $885,000 $882,000 ©. $878,000 $875,000 ‘SI. The following changes in Vel Corp's account balances ‘occurred during 2008: crease Assets ‘so. ates 2700 Cpa sock enim ‘Alina paid-in capital ‘eu Except fora $13,000 dividend payment and the year's earn- ings there were no changes in retained earnings for 2003, ‘What was Vel's net income for 2003? a $ 4,000 b. $9.00 $13,000 17.000 152. When preparing a draft of is 2003 balance sheet, Mont, In. reporied net asses totaling $875,000, Included in the asset seetion ofthe balance sheet were the following: Tranny tek f Mont, lc a cos hich ap tes market Yale on Deemer 3 sso ile machinery 1-200 Cus senr vale of fie insane om corporate cntves 3700 Alowanse for delne in mare ale of nonce uty sven 00 {At what amount should Monts net assets be reported in the December 31, 2103 balance shee ‘a. $851,000 $850,100 $842,600 $834,500 I statements which investor primarily use '53. In analyzing a company’s finan Financial statement would a potent to assess the company’s liguity and financial flexibil ‘a. Balance sheet. Income statement Statement of retained earings 44 Statement of cash flows, ‘$4. During 2003, Jones Company engaged inthe following Sala expense key employees who ar hopin Pulones 109900 ses to ited enterprises 250.00) Which ofthe two transactions would he disclosed as related party transactions in Jones’ 2003 financial statements? ‘a. Neither transaction, b. The $100,000 transaction only. ©, The $250,000 transaction only, 4. Both transactions '55. Dean Co, aoquited 100% of Morey Corp. price to 2003 During 2003, the individual companies inclidd in their financial statements te following: Dew os fer salaries s 78000 $30,000 Officer’ expennes aon “100m {mst officer asim sn090 ‘What amount should be reported as related: party disclosures inthe noes to Deans 2003 consolidated financial sate- ments? a. $150,000 b. $155,000 e. $175,000 d, $330.000 6. For which ype of material elated-party transactions ‘does Statement of Financial Accounting Standard 57, Relared-Party Disclosures, requite disclosure? a Only those not reported in the body ofthe financial (Only those that receive accounting recognition, ‘e. Those tha contain possible legal acts, 44. A those ofher than compensation arrangements, expense allowances, and other similar items inthe ordinary course of business 57. Financial statements shall include disclosures of ma ‘erial transactions between related parties except 1a. Nonmonetary exchanges hy affiliates. Sales of inventory by a subsidiary to its parent. cc. Expense allowance for executives which exceed normal business practice 4. Acompany’s agreement to act as surety for a loan {wits chief executive officer. 58 Dex Co, has entered into joint venture with an al fate to secure access to additional inventory. Under the joint ‘venture agreement, Dex will purchase the ouspat ofthe venture at prices negotiated on an arms-lengths bass. Which of the following is(ae) required wo be disclosed about the related-party transaction? 1. The amount due to the affiliate atthe balanes sheet date 1, The doltar amount of the purchases during the year. Lonly only Both [and I. [Neither nor I 159, What i the purpose of information presented in notes to the financial statements? a, To provide disclosures required by generally a: cepled necounting principles b. To correct improper presentation inthe financial To provide recognition of amounts not included in the totals ofthe inancial statements 4d, To present management's responses to auditor comments, (60. Which ofthe following information should be included in Melay, Inc.'s 2003 summary of significant aecounting policies? Property, plant. and equipment is recorded at cost ‘with depreciation computed principally by the straight-line method. b, During 2003, the Delay component was sold Business component 2008 sales are Alay SIM, Be- lay $2M, and Celay S3M. 4. Fatute common share dividends are expected to approximate 60% of earings. 61, Which ofthe following information should be disclosed inthe summary of significant aecounting policies? Refinancing of debt subsequent to the balance sheet date, Guarantees of indebtedness of others ©. Criteria for determining which investments are treated as cash equivalents 4. Adequacy of pension plan assets relative to vested benefits, ‘62, A company that wishes to disclose information about the effet of changing prices in aecordance with SEAS 89, Financial Accounting and Changing Prices, should report this information in The body of the financial statements, '. ‘Thenotes tothe financial statements ©. Supplementary information tothe Financial state- ments 4. Management’ report to shareholders ‘63. Lewis Company was formed on January 1, 2002, Se- lected balances from the historical cost balance sheet at De- smber 31,2003, were as follows: apd ipuchase in 200) simon Tnveumen in nnconverile bond puchacd in 200, and expected to be bel to mat) 0.00 Long-ter det ino ‘The average Consumer Price Index was 100 for 2002, and 110 for 2003, In a supplementary constant dollar balance sheet (adjusted for changing prices) at December 31,2008, these selected account balaices should be shown at Land Investment Langsterm debt $120,000 $60,000 $88,000, b. $120,000 $66,000 88,000 $132,000 $60,000 80,000 4 $132.00 $66,000 380.000 64, ‘The following items were among those that appeared on Rubi Co,'s books at the end of 2003) Merchandie inventory sn000 {ans to employees 2000 ‘What amount should Rubi classify as monetary assets in preparing constant dollar financial statements? b.§ 20000 © $600,000 $620,000 465, Ins financial statements, Hila Co, discloses supple- ‘mental information on the effects of changing prices in

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