Ignoring Taxes, What Is the Total Amount of Unrealized Profits

question 24

Multiple Choice

Ignoring taxes, what is the total amount of unrealized profits in inventory at the end of 2018?

• A) Nil.
• B) $6,000.
• C) $7,800.
• D)$8,000.

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Definitions:

Warehouse Clubs

Large retail stores, often requiring membership, that sell a variety of goods at discounted prices, usually in bulk or large quantities.

Sam's Club

A membership-only retail warehouse club owned and operated by Walmart Inc., offering a variety of merchandise and services.

Costco

A multinational corporation that operates a chain of membership-only warehouse clubs offering a wide selection of merchandise.

Hypermarkets

Large retail spaces combining a supermarket and a department store, offering a wide range of products under one roof.