Under a purchase contract signed by Company A in October of the current year, Company A will take delivery of inventory with a value of $56,000 scheduled for delivery on April 30 of the following year. By December 31 of the current year the fair value of the inventory has declined to $50,000. How will Company A record this in its records on December 31?

Answer rating: 100% (QA)

Company A should record the decline in the fair value of the inventory as ... View the full answer