Assume B industries, a value-added reseller, has 40 units of item AA in inventory that were purchased on Sept. 16, 2020 @ $8,000 each ($320,000 total). These items could now be bought from the manufacturer for $7,500 each. B Industries can sell these AA items for $11,400 each. Usually selling costs are 15% and normal profit margin is 33%.

What would be considered the "market" of item AA for determining the lower of cost or market pricing test?

What would be considered the "floor" of item AA for determining the market price in the lower of cost or market pricing test?

What would be considered the "ceiling" of item AA for determining the market price in the lower of cost or market pricing test?

What would be considered the "replacement cost" of item AA?