Food Depot Ltd If the Gross Margin Method Is Used to Estimate Ending

question 138

Multiple Choice

Food Depot Ltd.assembled the following information at the end of the current reporting period: $\begin{array} { l } \text {Sales revenue. }&\$56,400\\ \text {Beginning inventory. }&21,250\\ \text {Purchases. }&9,000\\ \text {Purchase returns. }&600\\ \text {Freight-in.. }&950\\ \text {Selling expense. }&15,750\\ \text {Mark-up on cost (estimated) }&25percent\\\end{array}$
If the gross margin method is used to estimate ending inventory,what amount should be reported as pre-tax income or loss?

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A transfer of an interest in property for the purpose of creating a security for a debt.

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Assets purchased or acquired for the purpose of the partnership business, jointly owned by all partners according to the partnership agreement.

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