Based on a physical inventory taken on december 31, 20x1, chewy co. determined its chocolate inventory on a fifo basis at $26,000 with a replacement cost of $20,000. chewy estimated that, after further processing costs of $12,000, the chocolate could be sold as finished candy bars for $40,000. chewy's normal profit margin is 10% of sales. what amount should chewy report as chocolate inventory on its december 31, 20x1, balance sheet? a. $28,000b. $26,000c. $24,000d. $20,000

Eliminating entries (including goodwill impairment) and worksheets for various years on january 1, 2013, porter company purchased an 80% interest in the capital stock of salem company for$850,000. at that time, salem company had capital stock of $550,000 and retained earnings of $80,000.differences between the fair value and the book value of the identifiable assets of salem company were asfollows: fair value in excess of book valueequipment$130,000land65,000inventory40,000the book values of all other assets and liabilities of salem company were equal to their fair values onjanuary 1, 2013. the equipment had a remaining life of five years on january 1, 2013. the inventory was sold in2013.salem company’s net income and dividends declared in 2013 and 2014 were as follows: year 2013 net income of $100,000; dividends declared of $25,000year 2014 net income of $110,000; dividends declared of $35,000required: a.prepare a computation and allocation schedule for the difference between book value of equity acquired andthe value implied by the purchase price.b.present the eliminating/adjusting entries needed on the consolidated worksheet for the year endeddecember 31, 2013. (it is not necessary to prepare the worksheet.)lo6lo1