QUESTION 1 10 points Save Answer Information related to a product of ABC Co. follows. Compute the inventory value reported int eh balance sheet under the lower-of-cost- or market rule. $60 30 Estimated selling price Original Cost Replacement Cost Cost of disposal Gross margin 70 4 16 $40 $56 $30 $70 QUESTION 2 10 points Saved Which of the following statements is TRUE when applying the lower-of-cost-or- market rule to inventory? Both potential losses and gains are recognized earlier in the period when the loss is estimated. Market is defined as replacement cost unless it exceeds the ceiling or is less than the floor. Market is always defined as the selling price of the inventory without adjustments. O This rule applies to inventory when the FIFO cost flow assumption is used