[calicpa]

I got a question in wiley test bank that says inventory is a depreciable asset. Is this true?

I can’t copy and paste it, how do you guys post your wiley questions? You retype it? Or is there a way I can post a pic? or link to a pic.

BEC - 84, 4/6/13
AUD - 77, 5/28/13
REG - 83, 4/12/14
FAR - 83, 10/3/13

Ethics - 90% 4/24/13

150 unit education requirement met!
Work experience met!

[calicpa]

https://www.another71.com/cpa-exam-study-plan/

BEC - 84, 4/6/13
AUD - 77, 5/28/13
REG - 83, 4/12/14
FAR - 83, 10/3/13

Ethics - 90% 4/24/13

150 unit education requirement met!
Work experience met!

[carpeCPA]

So, the Becker question is asking about the amortization of the difference between the fair value of the inventory and the cost of the inventory when you purchased the original investment. The reason you amortize inventory fair value is because you eventually sell that inventory. So, you increase the COGS to match the fair value of the inventory on the purchase.

REG - 93 (Jul'13)
FAR - 97 (Dec '13)
AUD - 99 (May '14)
BEC - Jul '14

Becker Self Study/Ninja Notes/Ninja Audio/Ninja MCQ/Wiley Test Bank/Wiley Book

[carpeCPA]

So, the Becker question is asking about the amortization of the difference between the fair value of the inventory and the cost of the inventory when you purchased the original investment. The reason you amortize inventory fair value is because you eventually sell that inventory. So, you increase the COGS to match the fair value of the inventory on the purchase.

REG - 93 (Jul'13)
FAR - 97 (Dec '13)
AUD - 99 (May '14)
BEC - Jul '14

Becker Self Study/Ninja Notes/Ninja Audio/Ninja MCQ/Wiley Test Bank/Wiley Book

[Author]

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