Question: Home Furnishings reports inventory using the lower-of-cost-or-market method. Below is information related to its year-end inventory. Required: 1. Calculate ending inventory under lower-of-cost-or-market. 2. Record

Home Furnishings reports inventory using the lower-of-cost-or-market method. Below is information related to its year-end inventory.

Required:
1. Calculate ending inventory under lower-of-cost-or-market.
2. Record any necessary adjustment to inventory.
3. Explain the impact of the adjustment in the financialstatements.

Inventory Qatity Quantity Market Cost Market Furniture Electronics 200 85 100 400 50 300

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