Eagle Resources, which uses the FIFO method, has these account balances at December 31, 2008, prior to releasing the financial statements for the year:

Eagle has determined that the replacement cost (current market value) of the December 31,2008 , ending inventory is \(\$ 13,000\).

Requirement 

Prepare Eagle Resources' balance sheet at December 31, 2008, to show how Eagle would apply the lower-of-cost-or-market rule to inventories. Include a complete heading for the statement.

Transcribed Image Text:

Inventory Beg. bal., 12,000 End bal. 14,000 Cost of Goods Sold Sales Revenue Bal. 72,000 Bal. 118,000