Which statement below is true?

When the net realizable value falls below its original cost, companies have a choice as to which valuation to report the

inventory $($original cost or net realizable value$).$

The write$-$down of inventory from cost to net realizable value reduces total assets and increases total expenses, leading to

lower net income and lower retained earnings.

Net realizable value is defined as the estimated selling price plus any additional costs $($i$.$e$.$ completion, disposal, transportation$)$

Inventory write downs to net realizable value occur as the inventory is sold.