Question: A large computer retailer has taken year end inventory and has
A large computer retailer has taken year-end inventory and has valued 80 Microgate X computers at $ 1,100 each, or $ 88,000—the original cost of the Microgate Xs. Current technologies have allowed the supplier to reduce the cost of the Microgate X to $ 900 each, although the computer store has not purchased any Microgate Xs at this price. Is the owner doing anything unethical by valuing the 80 Microgate Xs at the original cost of $ 88,000?
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