Courtney Sells a Cottage at the Lake That the Family

question 106

Multiple Choice

Courtney sells a cottage at the lake that the family had used for their summer vacations.The purchaser paid Courtney $100,000 and assumed the mortgage which had a principal balance of $50,000.Courtney had purchased the cottage five years ago for $170,000.Courtney will recognize

• A)a gain of $20,000.
• B)no gain or loss.
• C)a loss of $70,000.
• D)a loss of $20,000.

Understand the significance of markup in determining inventory values and operational metrics.

Grasp the concept of computing average inventory over specific periods.

Understand the impact of purchasing decisions on inventory valuation.

Understand the concept of inventory turnover and how it impacts business operations.