Compute the amount of Hurley's inventory that would be reported in a January 1, 2017, consolidated balance sheet.
A) $800.
B) $100.
C) $900.
D) $150.
E) $ 0.

Question

Quizplus · Accepted Answer

Hurley's inventory is $1,000 at January 1, 2016, and $200 at December 31, 2016. The average inventory for 2016 is $600. The beginning inventory for 2017 is $200. The consolidated inventory is the average inventory for 2016 plus the beginning inventory for 2017, which is $600 + $200 = $800.

Compute the Amount of Hurley's Inventory That Would Be Reported