Question: Warnke Stores has 20 toasters on hand at the balance sheet date. Each costs $27. The current replacement cost is $30 per unit. Under the

Warnke Stores has 20 toasters on hand at the balance sheet date. Each costs $27. The current replacement cost is $30 per unit. Under the lower-of-cost-or-market basis of accounting for inventories, what value should Warnke report for the toasters on the balance sheet? Why?

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