Gizmo Corporation Adopted the Dollar-Value Method of Accounting for Its

question 25

Multiple Choice

Gizmo Corporation adopted the dollar-value method of accounting for its inventory on January 1, 2011.On that date, its ending inventory was valued at $90,000.On December 31, 2012, ending inventory's value at current prices was $120,000.If the current year index is 120%, the value of Gizmo's ending inventory is

• A)$144,000
• B)$108,000
• C)$120,000
• D)$102,000
• E)None of the above

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Definitions:

Compensation Strategy

A plan designed to provide benefits, financial or otherwise, to employees or parties as a form of reward or for loss compensation.

Parties' Aspirations

The hopes or goals that individuals or groups aim to achieve in a negotiation or collaborative endeavor, driving their motivation and approach.

Common Ground

Shared interests, beliefs, or understanding among individuals or groups that can form the basis for communication or agreement.

Inaction Strategy

A negotiation approach where one party decides not to take any action as a tactic to influence the negotiation process or outcome.