Chapter 9, Problem 2P

To determine

Net realizable value: Net realizable value is defined as the amount from the sale of asset after deducting all expenses related to sale.

(a)

To determine the amount that needs to be recorded as balance in the Allowance to Reduce Inventory to NRV.

To determine

(b)

To determine the amount of the gain or loss for the fiscal year.

To determine

(c)

To explain: To explain the use of the LCNRV rule to inventories.