Question: 2. Simm Co. has determined its December 31 inventory on a FIFO basis to be $400,000. Information pertaining to that inventory follows: Estimated selling price

2. Simm Co. has determined its December 31 inventory on a FIFO basis to be $400,000. Information pertaining to that inventory follows:

Estimated selling price $403,000 Estimated cost of disposal 20,000 Normal profit margin 60,000 Current replacement cost 360,000 Simm records losses that result from applying the lower of cost or market rule. At December 31, what should be the amount of Simm’s inventory?

a. $400,000

b. $388,000

c. $360,000

d. $328,000

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