NCAA Bracket Corp. has the following inventory on hand as of 12/31/17. The inventory is grouped into two categories: (1) Winners, and (2) Losers: Winner Category Loyola Chicago UMBC Buffalo Loser Category Virginia Arizona Total Loser Category Cost OVERALL TOTAL $18,000 11,000 Total Winner Category $66,000 $55,000 37,000 NRV Cost $22,000 9,000 NRV NRV less normal Replacement profit margin $21,500 4,000 18,000 $43,500 NRV less normal profit margin $245,000 $280,000 230,000 95,000 92,000 87,000 $340,000 $372,000 $317,000 $406,000 $427,000 $360,500 cost $16,000 7,000 25,000 $48,000 Replacement cost $200,000 89,000 $289,000 $337,000 Assuming NCAA Bracket Corp. uses LIFO and applies the lower-of-cost-or-market method at the individual item level, what amount of loss (if any) will the company record for any decline in inventory value? Enter your answer as a positive number below with no commas or decimals.
NCAA Bracket Corp. has the following inventory on hand as of 12/31/17. The inventory is grouped into two categories: (1) Winners, and (2) Losers: Winner Category Loyola Chicago UMBC Buffalo Loser Category Virginia Arizona Total Loser Category Cost OVERALL TOTAL $18,000 11,000 Total Winner Category $66,000 $55,000 37,000 NRV Cost $22,000 9,000 NRV NRV less normal Replacement profit margin $21,500 4,000 18,000 $43,500 NRV less normal profit margin $245,000 $280,000 230,000 95,000 92,000 87,000 $340,000 $372,000 $317,000 $406,000 $427,000 $360,500 cost $16,000 7,000 25,000 $48,000 Replacement cost $200,000 89,000 $289,000 $337,000 Assuming NCAA Bracket Corp. uses LIFO and applies the lower-of-cost-or-market method at the individual item level, what amount of loss (if any) will the company record for any decline in inventory value? Enter your answer as a positive number below with no commas or decimals.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education