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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
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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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?
Transcribed Image Text: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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