Please answer the following questions in a word or excel 1. On August 1, 2019 Gillian’s Gems exchanged productive Assets with Tara’s Treasures with the following data related to the Assets: ...

Please answer the following questions in a word or excel

1.On August 1, 2019 Gillian’s Gems exchanged productive Assets with Tara’s Treasures with the following data related to the Assets:

Gillian’sTara’s

Equipment cost$96,000$110,000

Accumulated Depreciation$40,000$47,000

Fair Value, Date Exchange$60,000$75,000

Cash Paid by Gillian$15,000

Cash Received by Tara$15,000

Required
:

a.Assuming the above listed transaction has Commercial Substance, record the exchange for both Gillian’s Gems and Tara’s Treasures in accordance with GAAP.

b.Record the same entry, assuming the transaction lacks Commercial Substance.

2.Keira’s Kites has the following information pertaining to her Kite Inventory:

KITE
Cost
ReplaceCostNRV
NRV- Profit

A$20,000$20,500$21,000$16,000

B$50,000$51,000$49,500$41,000

C$44,000$45,500$46,250$37,000

D$32,000$29,900$38,300$30,700

Required:

a.Calculate theLower of Cost or Market Valuefor
each
item of inventory and RECORD any adjusting Journal Entry required.

b.Calculate the
Lower of Cost or Market for the Total Inventory
and record any adjusting entry required.

**NRV=Net Realizable Value****

***NRV-Profit = Net Realizable Value – Normal Profit Margin***

3.Tara’s Treasures has a wide variety of classis Jewelry items.Recently, the company decided to value it’s inventory usingDollar-Value LIFO.You are provided with the following information regarding her Jewelry:

Date
End of Year INV Prices
Price Index

Dec 31, 2017$80,000100%

Dec 31, 2018$111,300105%

Dec 31, 2019$108,000120%

Dec 31, 2020$128,700130%

Dec 31, 2021$147,000140%

Dec 31, 2022$174,000140%

Required:

Compute the ending Inventory for Tara’s Treasures for 2017-22 using the Dollar Value LIFO Method

4.Melvin Corporation uses theCONVENTIONAL RETAIL METHODfor Financial Reporting.The company’s inventory record are summarized as follows:

DescriptionCostRetail

Beginning Inventory$700,000$1,015,000

Purchases$1,320,000$1,857,500

Additional Markups$72,000

Markup Cancellations$12,000

Markdowns$18,500

Markdown Cancellations$3,000

Sales$2,740,500

Required:

Estimates Melvin’s Ending Inventory using the Conventional Retail Method (Round percentages to two decimal places)