(L02) Presented below is information related to Rembrandt Inc.’s inventory, assuming Rembrandt uses lower-of-LIFO cost-or-market.

(per unit) Skis Boots Parkas Historical cost $190.00 $106.00 $53.00 Selling price 212.00 145.00 73.75 Cost to distribute 19.00 8.00 2.50 Current replacement cost 203.00 105.00 51.00 Normal profi t margin 32.00 29.00 21.25 Determine the following:

(a) the two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-ofcost-

or-market computation for skis,

(b) the cost amount that should be used in the lower-of-cost-or-market comparison of boots, and

(c) the market amount that should be used to value parkas on the basis of the lower-of-cost-or-market.