Suppose that Ivanhoe Depot developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value (LCNRV) basis in valuing inventories:ProductABCCost$11900083000166000NRV$12500079000168000After Ivanhoe Depot applies the LCNRV rule, the value of the inventory reported on the balance sheet will be$368000.O $364000.O $372000.O $376000.

The LCNRV concept is a conservative accounting strategy that guarantees inventory values are not…

Suppose that Ivanhoe Depot developed the following information about its inventories in applying the low realizable-value (LCNRV) basis in valuing inventories: Product Cost A $119000 83000 B C 166000 NRV $125000 79000 168000

Suppose that Ivanhoe Depot developed the following information about its inventories in applying the low realizable-value (LCNRV) basis in valuing inventories: Product Cost A $119000 83000 B C 166000 NRV $125000 79000 168000

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 7QE

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Jenks Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizabl e-value(LCNRV) basis in valuing inventories: Product Cost NRV A $114,000 $120,000 B 80,000 76,000 C 160,000 162,000 After Jenks applies the LCNRV rule, the value of the inventory reported on the balance sheet would be
Pharoah Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value(LCNRV) basis in valuing inventories: Product Cost Market A $141000 $149000 В 99000 94000 C 198000 201000 After Pharoah Company applies the LCNRV rule, the value of the inventory reported on the balance sheet would be O $444000. O $449000. O $438000. O $433000.
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