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Chapter 11, Problem 4RE
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Case summary: The government of H entered into a contract with an arms dealer known as R to buy weapons for over the six-year period. When the government was replaced in H then the government decided to reduce military size which resulted in deterioration of the relationship with R. The government H refused to honor the contract by purchasing more arms and paying lesser amounts for the same. R filed a case in the federal district court of the US to recover the damages caused.

To find: The doctrine under which R would be able to collect damages by asking another nation’s court to enforce US judgment.

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Concord Company uses the LCNRV method, on an individual item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item Item Item Item I FL G H Estimated selling $ 122 $112 $ 97 $ 92 $ 112 $ 92 price Cost 77 82 82 82 51 37 Cost to complete 31 31 26 36 31 31 Selling costs 10 18 10 20 10 20 Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2017, for each of the inventory items above. Item D Item E Item F Item G Item H Item I EA EA EA EA
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