Wilson Corp. experienced a $50,000 decline in the market value of its inventory in the first quarter of its fiscal year. Wilson had expected this decline to reverse in the third quarter, and in fact, the third quarter recovery exceeded the previous decline by $10,000. Wilson's inventory did not experience any other declines in market value during the fiscal year. What amounts of loss and/or gain should Wilson report in its interim financial statements for the first and third quarters?
A. First quarter: $0; Third quarter: $0
B. First quarter: $0; Third quarter: $10,000 gain
C. First quarter: $50,000 loss; Third quarter: $50,000 gain
D. First quarter: $50,000 loss; Third quarter: $60,000 gain
FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83
CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel