In anticipation of increased steel prices, the Auto Company purchased a four months supply of steel. As

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In anticipation of increased steel prices, the Auto Company purchased a four months’ supply of steel. As of December 31, the costs of carrying this steel in inventory were $10,000,000 (the steel had an invoice price of $200,000,000).

Should the steel inventory be shown on the December 31 statements at $200,000,000 or $210,000,000?

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