Given the Following Items and Costs as of the Balance

question 103

Multiple Choice

Given the following items and costs as of the balance sheet date,determine the value of Faltron Company's merchandise inventory. - $1,000 goods sold by Faltron to another company.The goods are in transit and shipping terms are FOB destination.
- $2,000 goods sold by another company to Faltron.The goods are in transit and shipping terms are FOB destination.
- $3,000 owned by Faltron but in the possession of another company,the consignee.
- Damaged goods owned by Faltron that originally cost $4,000 but now have a $500 net realizable value.

• A)$10,000
• B)$6,500
• C)$5,500
• D)$5,000
• E)$4,500

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Definitions:

Dual Attitude Theory

A psychological concept suggesting that people can hold two different evaluations (positive and negative) about the same object at the same time.

Downward Comparison

The act of comparing oneself to people who are worse off.

Upward Comparison

The act of comparing oneself to people who are better off.

Assumptive Worlds

The set of beliefs and assumptions through which an individual perceives and interacts with the world.