Currently, Sampson Industries a large conglomerate with a normal calendar year operating cycle has one centralized warehouse for inventory. Inventory Item No. 2704 is near the end of its product life cycle. Sampson wants to divest the business unit that exclusively sells Item No. 2704. However, Sampson plans to keep the inventory and sell it apart from the business unit since Sampson has warehouse space and the item adds to bottom line. The company estimates that it will take a number of years to completely sell the inventory (the inventory is such that it won’t become obsolete).

Requirement: 

Where should the inventory appear on a classified balance sheet? Provide specific Codification references.