16. Which method(s) may be used to record a loss due to a price decline in the value of inventory? A) The cost-of-goods-sold method. B) The sales method. C) The loss method. D) Both the cost-of-goods-sold method and the loss method. 17. Net realizable value is A) acquisition cost plus costs to complete and sell. B) selling price. C) selling price plus costs to complete and sell. D) selling price less costs to complete, sell, and transport. 18. Given the historical cost of product Dominoe is $12, the selling price of product Dominoe is SIS, costs to sell product Dominoe are S2, the replacement cost for product Dominoe is SII, and the normal profit margin is 20% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method? A) S13 B) $12. C) $. D) $10. 19. RS Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 600 pounds of a spice mixture at $3.00 per pound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had risen to $3,25 per pound. In 2020, RS should recognize A) a loss of $1,800. B) a loss of $150. C) no gain or loss. D) a gain of $150. 20. During the prior fiscal year, Jeremiah Corp. signed a long-term noncancelable purchase commitment with its primary supplier to purchase $2.0 million of raw materials. Jeremiah paid the $2.0 million to acquire the raw materials when the raw materials were only worth $1.6 million. Assume that the purchase commitment was properly recorded. What is the journal entry to record the purchase? A) Debit Inventory for $1,600,000, and credit Cash for $1,600,000. B) Debit Inventory for $1,600,000, debit Unrealized Holding Gain or Loss for $400,000, and credit Cash for $2,000,000. C) Debit Inventory for $1,600,000, debit Estimated Liability on Purchase Commitments for $400,000 and credit Cash for $2,000,000. D) Debit Inventory for $2,000,000, and credit Cash for $2,000,000