Chapter 5 Flashcards by Lauren Klein | Brainscape

Q

Cash Discounts reduce….

A

cost of inventory
treated as income
whichever one you pick it must be consistant

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Q

Trade Discounts are treated as…

A

lower cost of inventory

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Q

If assets that constitute a trade or business is acquired the purchase price is allocated among the assets in proportion to the…

A

lesser of their adj. basis or FMV

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