Barker Company has at the end of the current period an inventory of merchan¬

dise which cost $500,000. It would cost $600,000 to replace this inventory, and it is estimated that the goods will probably be sold for a total of $700,000. If the firm were to terminate operations immediately, the inventory could probably be sold for $480,000. Discuss the relative reliability and relevance of each of these dollar measurements of the ending inventory. LO4