What Amount Would Have Been Reported for This Inventory in Porter's

question 9

Multiple Choice

What amount would have been reported for this inventory in Porter's consolidated balance sheet at December 31, 2017?

• A) $24,000.
• B) $26,400.
• C) $22,800.
• D) $27,600.
• E) $28,800.

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Definitions:

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Quantum Meruit

A legal principle meaning "as much as he has deserved," allowing a person to recover reasonable compensation for services or goods provided when no contract exists, or where a contract exists but precise amounts are not specified.

Relied Promise

This term does not correspond to standard legal or contractual terminology and may not be a real key term. NO.

Quantum Meruit

A Latin phrase meaning “what one has earned,” used in law to determine the amount to be paid for services rendered when no contract exists or when a contract is unenforceable.