Waegelein Company Identifies the Following Items for Possible Inclusion in the Physical

question 90

Essay

Waegelein Company identifies the following items for possible inclusion in the physical inventory. Indicate whether each item should be included or excluded from the inventory taking.
1. Goods shipped on consignment by Waegelein to another company.
2. Goods in transit from a supplier shipped FOB destination.
3. Goods shipped via common carrier to a customer with terms FOB shipping point.
4. Goods held on consignment from another company.

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Definitions:

Depreciation

Depreciation is the accounting method of allocating the cost of a tangible asset over its useful life, representing wear and tear, deterioration, or obsolescence of the asset.

Section 179

A tax code provision allowing businesses to deduct the full purchase price of qualifying assets financed or purchased during a tax year, subject to limits.

Business Trip

A journey taken for work or business purposes, often involving travel outside the usual work environment.

Expense Deduction

An expenditure that is subtracted from gross income to reduce the amount of income that is subject to taxation.