Question
1.Rensic Inc. values its inventory at the lower of cost or net realizable value (LCNRV) as required by IFRS. Rensic has the following information regarding
1. Rensic Inc. values its inventory at the lower of cost or net realizable value (LCNRV) as required by IFRS. Rensic has the following information regarding its inventory:
Historical cost
$1,500
Estimated selling price
1,350
Estimated costs to complete and sell
75
Replacement cost
1,200
Required: What is the amount for inventory that Rensic Inc. should report on the balance sheet under the lower of cost or net realizable value method?
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
