Ken Corporation is in the process of preparing its annual financial statements for the fiscal year ending, December 31, 2012. The company sells…
Ken Corporation is in the process of preparing its annual financial statements for the fiscal year ending, December 31, 2012. The company sells widgets to various manufactures and stores in the area. They are publicly traded. The inventories are valued at Lower cost or market. Inventory is done on the LIFO basis. The company also had a loss in inventory at yearend of $ 300,000, due to obsolescence.Property, Plant and Equipment: Are classified in the following major categories: Land, office buildings, furniture and fixtures, equipment, and leasehold improvements. All fixed assets are carried per U.S. Gaap requirements for cost. The depreciation methods used depend on the type of asset, and when it was acquired. The following are straight line: Office buildings, furniture and fixtures, and equipment. Leasehold improvements are depreciated using the sum of year’s method.Kens Corporation plans to present the inventory and fixed amounts in its December 31, 2012 balance sheet as shown below:
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