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2. A company determined the following values for its inventory as of the end of its fiscal year: Historical cost Current replacement cost Net realizable value. Net realizable value less a normal profit margin Fair value What amount should the company report for inventory on its balance sheet? a. $35,000 b. $40,000 c. $45,000 d. $48,000 $50,000 35,000 45,000 40,000 48,000

2. A company determined the following values for its inventory as of the end of its fiscal year: Historical cost Current replacement cost Net realizable value. Net realizable value less a normal profit margin Fair value What amount should the company report for inventory on its balance sheet? a. $35,000 b. $40,000 c. $45,000 d. $48,000 $50,000 35,000 45,000 40,000 48,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. A company determined the following values for its inventory as of the end of its fiscal year: Historical cost Current replacement cost d. $48,000 Net realizable value Net realizable value less a normal profit margin Fair value What amount should the company report for inventory on its balance sheet? a. $35,000 b. $40,000 c. $45,000 $50,000 35,000 45,000 40,000 48,000
Transcribed Image Text:2. A company determined the following values for its inventory as of the end of its fiscal year: Historical cost Current replacement cost d. $48,000 Net realizable value Net realizable value less a normal profit margin Fair value What amount should the company report for inventory on its balance sheet? a. $35,000 b. $40,000 c. $45,000 $50,000 35,000 45,000 40,000 48,000
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