Metropolitan Masonry Made a Basket Purchase of Three Items

question 123

Multiple Choice

Metropolitan Masonry made a basket purchase of three items.Item X was appraised at $35,000;item Y was appraised at $55,000 and item Z was appraised at $60,000.The purchase price was $125,000.The amount at which item Y should be recorded is:

• A)($55,000/$125,000)× $150,000.
• B)($55,000/$150,000)× $125,000.
• C)($55,000/$95,000)× $150,000.
• D)($55,000/$95,000)× $125,000.

Understand the purpose and preparation of a trial balance.

Identify the normal balance for different types of accounts.

Recognize the process for analyzing and recording transactions.

Understand the nature and treatment of unearned revenues in accounting.

---

Definitions:

Countervailing Duties

Tariffs levied on imported goods to offset subsidies made to producers of these goods in their home countries.

General Agreement

A broad contract or understanding between parties that outlines the terms and conditions of their relationship or agreement.

Imported Lumber

Refers to wood that has been sourced from another country and then brought into a domestic market for use or sale.

Tax Treatment

The specific way tax laws apply to various types of income, expenses, and investments.