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At year end, XYZ Company determined its inventory to be $962,000 on a LIFO basis. The current replacement cost of the inventory was $850,000. XYZ
At year end, XYZ Company determined its inventory to be $962,000 on a LIFO basis. The current replacement cost of the inventory was $850,000. XYZ estimates that the inventory could be sold for $1,052,000 at a disposal cost of $25,000. Assume the normal profit margin for XYZ'S inventory was $60,000. Enter in the designated cells below the relevant amounts for analysis in XYZ's year-end preparation of inventory figures. Item Amount 1. Historical cost 2. Market ceiling 3. Market floor 4. Market 5. Final carrying amount of inventory
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