=+. The book value of PEARs inventory on 31 December 2002 and 31 December 2003 was $400,000

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=+. The book value of PEAR’s inventory on 31 December 2002 and 31 December 2003 was $400,000 and $450,000 respectively. Inventory held at the end of 2002 and 2003 was purchased on 1 December in each year. PEAR does not have any non-current assets on its books.

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