Question: 239 BOZ Co. has determined its year-end inventory on a FIFO basis to be $500,000. Information pertaining to that inventory follows: Estimated selling price $ 5,08,000 Estimated cost of disposal 20,000 Normal profit margin Current replacement cost 60,000 4,55,000 BOZ records losses that result from applying the lower-of-cost-or- market (LCM) rule. At its year-end, what should be the net carrying value of BOZ's inventory? a. $500,000 b. $488,000 c. $455,000 d. None of the above is correct

SWFT Individual Income Taxes
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Chapter18: Accounting Periods And Methods
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Question: 239
BOZ Co. has determined its year-end inventory on a FIFO basis to be
$500,000. Information pertaining to that inventory follows:
Estimated selling price
$ 5,08,000
Estimated cost of disposal
20,000
Normal profit margin
Current replacement cost
60,000
4,55,000
BOZ records losses that result from applying the lower-of-cost-or-
market (LCM) rule. At its year-end, what should be the net carrying
value of BOZ's inventory?
a. $500,000
b. $488,000
c. $455,000
d. None of the above is correct
Transcribed Image Text:Question: 239 BOZ Co. has determined its year-end inventory on a FIFO basis to be $500,000. Information pertaining to that inventory follows: Estimated selling price $ 5,08,000 Estimated cost of disposal 20,000 Normal profit margin Current replacement cost 60,000 4,55,000 BOZ records losses that result from applying the lower-of-cost-or- market (LCM) rule. At its year-end, what should be the net carrying value of BOZ's inventory? a. $500,000 b. $488,000 c. $455,000 d. None of the above is correct
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