Assume That the Replacement Did Not Happen in November

question 54

Multiple Choice

Assume that the replacement did not happen in November.In December,the company decided not to replace any of the 1,500 units.The entry required on December 31 to eliminate valuation accounts related to the inventory that will not be replaced will include:

• A)a debit to Excess of Replacement Cost over LIFO Cost of Inventory Liquidation for $22,500.
• B)a credit to Cost of Goods Sold for $15,000.
• C)a debit to Inventory for $70,000.
• D)a debit to Inventory for $15,000.

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A retirement plan that meets the requirements of the Internal Revenue Code and ERISA, offering tax advantages to the employer and employee.

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