For this reason, if the fair value of an item of inventory at the end of an

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For this reason, if the fair value of an item of inventory at the end of an accounting period is lower than its original cost, the item is “written down” to its f ___ v ____ . For example, for an item whose original cost was $150 and whose current fair value is $120, its inventory amount should be written down by $ . (This is an exception to the general rule that nonmonetary assets are reported at cost.)

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Essentials Of Accounting

ISBN: 9780273771463

11th International Edition

Authors: Leslie K. Breitner

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