Maggie Stores has 20 toasters on hand at the statement of financial position date. Each cost $28.

Question:

Maggie Stores has 20 toasters on hand at the statement of financial position date. Each cost $28. The net realizable value is $30 per unit. Under the lower of- cost-or-net realizable value basis of accounting for inventories, what value should Maggie report for the toasters on the statement of financial position? Why?