Paulson, Inc.has 5 computers which have been part of the inventory for over two years.Each computer cost ₤600 and originally retailed for ₤825.At the statement date, each computer has a net realizable value of ₤350.How much loss should Paulson, Inc., record for the year?

Question

Quizplus · Accepted Answer

To calculate the loss, we need to find the difference between the original cost and the net realizable value, which is ₤600 - ₤350 = ₤250 for each computer. Therefore, the total loss for all 5 computers would be ₤250 x 5 = ₤1,250. Hence, the correct answer is option B.