A company determined the following values for its inventory as of the end of its fiscal year:

Question:

A company determined the following values for its inventory as of the end of its fiscal year: 

Historical................... $50,000

Current replacement cost...........$35,000

Net realizable value......................$45,000

Net realizable value 

less a normal profit margin............40,000

Fair Value..........................................48,000


What amount should the company report for inventory on its balance sheet? 

a. $35,000 

b. $40,000 

c. $45,000 

d. $48,000

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

International Accounting

ISBN: 978-1260466539

5th edition

Authors: Timothy Doupnik, Mark Finn, Giorgio Gotti, Hector Perera

Question Posted: