Five-Eighths of Jim Bernard's Inventory Was Destroyed by Water Damage

question 99

Essay

Five-eighths of Jim Bernard's inventory was destroyed by water damage. He sold the remaining part, which was slightly damaged, for one-third of its value and received $5000.
a) What was the value of the destroyed part of the inventory?
b) What was the value of the inventory before the fire?

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Definitions:

Two-Thirds Majority Vote

A voting requirement where at least two-thirds of the members present must agree for a proposal to pass, often used for significant decisions.

Transfer Payments

Payments made by the government to individuals for which no goods or services are provided in return, such as welfare benefits.

Budget Deficit

The situation where a government's expenditures surpass its revenue over a specific period, leading to borrowing or debt accumulation.

Government Purchases

Expenditures by government entities on goods and services that directly absorb resources and are part of the nation's gross domestic product (GDP).