On January 1, 2013, Hart Company Carried Inventory at the Lower

question 33

Short Answer

On January 1, 2013, Hart Company carried inventory at the lower of cost or market on an aggregate basis. The cost of the inventory was $19,456 but the current market value is $19,950. Assuming the perpetual inventory system is used, how will the inventory adjustment, if one is necessary, affect the financial statements?

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Definitions:

Earthquake

A natural phenomenon characterized by the shaking of the earth's surface, typically resulting from the movement of tectonic plates beneath the earth's crust.

Building Material

Materials used in the construction of buildings and structures, including wood, concrete, steel, bricks, and glass.

Condition Subsequent

A condition in a contract that, when met, can end obligations under the contract or terminate the contract itself after the contract has already been executed.

Contractual Clause

A provision or condition included within a contract that specifies the obligations, rights, or duties of the parties involved.