[The Following Information Applies to the Questions Displayed Below

question 117

Multiple Choice

[The following information applies to the questions displayed below.]
Bremmer uses a periodic inventory system and the following information is available:

-What is the gross profit?

• A)$96,800
• B)$133,600
• C)$132,200
• D)$230,400

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on current prices in an orderly transaction between market participants.

Book Value

Book value is the value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation, amortization, or impairment costs.

Loss on Disposal

An expense recorded when an asset is sold for less than its carrying amount on the balance sheet.

Cash Proceeds

The actual amount of money received from transactions such as sales, financing, or the sale of assets.