Blues Corporation has 100,000 electric guitars with the following attributes: Cost of inventory item = $100 NRV (ceiling) = $95 Replacement cost = $90 NRV minus a normal profit margin (floor) = $85 What is inventory valuation under US GAAP?

Blues Corporation has 100,000 electric guitars with the following attributes: Cost of inventory item = $100 NRV (ceiling) = $95 Replacement cost = $90 NRV minus a normal profit margin (floor) = $85 What is inventory valuation under US GAAP?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

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Question

Subject :- General Account

Blues Corporation has 100,000 electric guitars with the
following attributes:
Cost of inventory item = $100
NRV (ceiling) = $95
Replacement cost = $90
NRV minus a normal profit margin (floor) = $85
What is inventory valuation under US GAAP?

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