Smart Phones,Inc

question 22

Multiple Choice

Smart Phones,Inc.had the following balances and transactions during 2019.

The company maintains its records of inventory on a perpetual basis using the last-in,first-out inventory costing method.Calculate the amount of ending Merchandise Inventory at December 31,2019 using the lower-of-cost-or-market rule.(Round any intermediate calculations two decimal places,and your final answer to the nearest dollar. )

• A)$2,800
• B)$3,244
• C)$3,542
• D)$3,404

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.

Stock Dividend

A dividend payment made in the form of additional shares of the company's stock, rather than cash.

Market Value

The current value of an asset or company based on the price at which it can be sold in the marketplace.

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a claim on profits.