Avanti Co Purchased Inventory for $700

question 10

Short Answer

Avanti Co purchased inventory for $700.While on display the goods were damaged and made nearly worthless.It is determined that the goods can be sold at auction for $65 with the auctioneer taking $10 of that amount for his fee.The net realisable value of the goods is $_______.

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Definitions:

Close Corporations

Businesses characterized by a small number of shareholders, no public shares, and often more relaxed corporate governance standards.

Flexibility

The quality of being adaptable or variable in order to accommodate different circumstances or needs.

Rules of Operation

refer to established procedures or guidelines that govern the functioning or conduct of an organization, system, or process.

Close Corporation

A business with a limited number of shareholders and no public shares, often operated more informally than public corporations but with legal protections.