Gannon Company Had the Following Information at December 31: Finished $1 \quad \$ 50,000$

question 127

Multiple Choice

Gannon Company had the following information at December 31: Finished goods inventory, January $1 \quad \$ 50,000$
Finished goods inventory December $31 \quad 150,000$ If the cost of goods manufactured during the year amounted to $2,200,000 and annual sales were $2,750,000, the amount of gross profit for the year is

• A)$550,000.
• B)$2,100,000.
• C)$650,000.
• D)$450,000.

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Definitions:

Third-party Beneficiaries

Individuals or entities that, while not directly involved in a contract, stand to benefit from its execution or terms.

Reasonable and Foreseeable

A legal standard applied to determine if a person could predict or anticipate the effects of their actions in a given context.

Injured

Refers to an individual who has suffered harm or damage, which may be physical, emotional, or financial, due to another party's actions or negligence.

Household Members

Individuals who reside in the same dwelling, sharing living accommodations and possibly familial or economic ties.