Applying Lower of Cost or Net Realizable Value using the Cost of Goods Sold Method is:

A.Always misleading to the financial statement reader.

B. Can be misleading to the financial statement reader if the decline in value is not a normal recurring write but is rather material and/or unusual in nature.

C.Buries the loss in the operating section of the income statement.

D.Clearly discloses the loss as a line item on the income statement for the reader of the financial statements to see.

E. Both B and C