Yancey Company The Following Information Is Available for Yancey Company,a Retail Store,for

question 156

Essay

Yancey Company
The following information is available for Yancey Company,a retail store,for the year 2013.The company uses a periodic inventory system.
Beginning inventory was $32,000.During the year,Yancey Company purchased goods totaling $634,000 on account with terms of 2/10,n/30,FOB shipping point.Yancey Company paid $1,000 in total freight charges directly to the freight company.At the end of the year,inventory on hand totaled $45,000.Net sales reported on the income statement for the year totaled $1,300,000.
-Refer to the information provided for Yancey Company.How much is cost of goods sold assuming that Yancey Company takes advantage of one-half of the cash discount?

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Definitions:

CCA Rate

The Capital Cost Allowance (CCA) rate refers to the percentage rate at which a business can claim depreciation on certain property types for tax purposes in Canada.

Net Advantage to Leasing

This is a calculation used to determine if leasing an asset is a more cost-effective option than purchasing it outright, taking into account all the costs and benefits associated with leasing.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an even manner.

Depreciation Tax Shield

The tax savings achieved by a company from the deductible expenses of depreciation, reducing its taxable income.