2006, and mature January 1, 2011, with interest receivable December 31 of each year. The company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year is as follows:
• •
2006 – $320,500 2007 – $309,000
•
2008 – $308,000
•
2009 – $310,000
•
2010 – $300,000
The following information is available from Jamona’s inventory records
Units
Unit Cost
600
$ 8.00
January 5, 2007
1,200
9.00
January 25, 2007
1,300
10.00
February 16, 2007
800
11.00
March 26, 2007
600
12.00
January 1, 2007 (beginning inventory)
Purchases:
A physical inventory on March 31, 2007, shows 1,600 units on hand. Select any one of the inventory methods (LIFO, FIFO, Average Cost, or others).
1. On July 6, Jamona Corp. acquired the plant assets of Berry Company, which had discontinued operations. The appraised value of the property is: