3. Raceway Corporation manufactures miniature cars and racetracks for collectors and enthusiasts. Raceway placed an order for supplies from Delta Inc. on December 1. The sales staff at Delta informed Raceway that the supplies would not be available to ship out until December 22 and Raceway accepted this arrangement. The supplies actually shipped, FOB shipping point, on December 26 and arrived at Raceway's receiving dock on January 2. On which date should Raceway include the supplies in its inventory? 1. December 1 2. December 22 3. December 26 4. January 2 4. Which of the following concerning the lower-of-cost-or-market" rule is not true? 1. If the estimated value of an inventory item falls below its historical cost, the value of the item should be written down. 2. If the market value of an item exceeds its historical cost, it should be written up and a gain should be recorded. 3. It is possible for an item's net realizable value to fall below its historical cost. 4. Lower-of-cost-or-market is an example of the conservatism principle