### Coronado Corporation's Ending Inventory AssessmentCoronado Corporation has provided data regarding the cost and Net Realizable Value (NRV) of four items in its ending inventory. The details are as follows:| Item | Cost | Net Realizable Value (NRV) ||------------|-------|----------------------------|| Jokers | $2,480| $2,604 || Penguins | $6,200| $6,138 || Riddlers | $5,456| $5,735 || Scarecrows | $3,968| $4,749 |### Instructions for DeterminationDetermine the following: the Lower of Cost or Net Realizable Value (LCNRV) for each item.| Item | LCNRV ||------------|-------|| Jokers | $ || Penguins | $ || Riddlers | $ || Scarecrows | $ |**Guidance on LCNRV Calculation:**- **LCNRV** is the lower value between the cost and the NRV.- Compare the cost and NRV for each item.- Enter the lower value in the LCNRV column for each item.This exercise helps in aligning inventory valuation with accounting standards by recognizing potential losses. **Instructions for LCMRV Evaluation****(1) Determine the amount of write-down, if any, using an item-by-item LCMRV evaluation. (If no write-down, enter 0 for the amounts.)**| Item | Write-down ||------------|------------|| Jokers | $ || Penguins | $ || Riddlers | $ || Scarecrows | $ |**(2) Determine a total category LCMRV evaluation. (If no write-down, enter 0 for the amount.)**Total category LCMRV: $______---**Explanation**The table above provides a framework for determining the write-down amounts for various items, using an item-by-item evaluation method. This involves assessing each item (Jokers, Penguins, Riddlers, Scarecrows) individually to determine if a write-down is necessary. If not, you should enter "0" for the amounts.Additionally, there is an option to calculate the total category LCMRV if a broader category evaluation is required, with a similar instruction to enter "0" if no write-down is needed.

Name: ### Coronado Corporation's Ending Inventory AssessmentCoronado Corpor
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Description: ### Coronado Corporation's Ending Inventory AssessmentCoronado Corporation has provided data regarding the cost and Net Realizable Value (NRV) of four items in its ending inventory. The details are as follows:| Item | Cost | Net Realizable Va

Lower of cost or net realizable value (LCNRV) is an accounting principle that requires companies to value their inventory at the lower of its historical cost or its net realizable value. Historical cost refers to the cost at which the inventory was originally acquired or produced. Net realizable value, on the other hand, is the estimated selling price of the inventory minus the estimated costs of completion, disposal, and transportation.LCNRV for Each item ( Lower of cost or net realizable value) Answer 1.Answer 2:

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Coronado Corporation has the following four items in its ending inventory. Net Realizable Item Cost Value (NRV) Jokers $2,480 $2,604 Penguins 6,200 6,138 Riddlers 5,456 5,735 Scarecrows 3,968 4,749 Determine the following the LCNRV for each item. Item LCNRV Jokers Penguins Riddlers Scarecrows

Coronado Corporation has the following four items in its ending inventory. Net Realizable Item Cost Value (NRV) Jokers $2,480 $2,604 Penguins 6,200 6,138 Riddlers 5,456 5,735 Scarecrows 3,968 4,749 Determine the following the LCNRV for each item. Item LCNRV Jokers Penguins Riddlers Scarecrows

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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