a. Discount Dollars should adjust the VHS inventory value down to  current market value b. Discount Dollars should do nothing as VHS inventory is currently  recorded at its historical cost c. Discount Dollars should adjust the VHS inventoy down to zero d. Discoutn Dollars should just throw the VHS tapes away and only purchase DVDs in the future

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Discount Dollar Store currently holds thousands of VHS tapes in its inventory.Because of the introduction of digital entertainment, the market value of these tapes has dropped drastically. If you were approximately apply the conservatism constraint, how should Discount Dollars record the VHS tapes inventory?
a. Discount Dollars should adjust the VHS inventory value down to 
current market value
b. Discount Dollars should do nothing as VHS inventory is currently 
recorded at its historical cost
c. Discount Dollars should adjust the VHS inventoy down to zero
d. Discoutn Dollars should just throw the VHS tapes away and only purchase
DVDs in the future

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