What Inventory Balance Should Badger Report on Its 12/31/09 Balance

question 12

Multiple Choice

What inventory balance should Badger report on its 12/31/09 balance sheet?

• A)$126,000
• B)$121,000
• C)$120,000
• D)$100,000 $126,000/1.05 = $120,000.This includes two layers, the first at $100,000 and the second at $20,000.The second is then brought forward to 12/31/09 by $20,000 1.05 = $21,000.

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