can someone help me with this? Thanks. The requirement says it has to be in memo format and please include citation.

Valuation Issues USING CODIFICATION C8-12 Researching GAAP Situation value of these products that was taken in the Diversified Inc. is a retailer that sells a variety of goods under three major business units. Its Food Products Division delivers wholesale food products to national grocery store chains. Its Home Appliances Division manu- factures and sells home kitchen appliances such as refrigerators, microwave ovens, and dishwashers. Finally, its High Fashion Divi- sion is a recognized lcader in high-end wom- en's clothing. During his annual review of the company's financial condition, Diversi- fied's president noted that the company's inventory included a material reduction described as an "allowance to reduce inven- third quarter was more than offset by the high margins in the High Fashion Division. There- fore, the president felt that no write-down should have been taken. Further, the presi- dent noted that the company had the faulty switches in the third fiscal quarter and subsequent sales had shown that the mar- ket value of its appliances had partially recov- ered. All estimates are that the value of the appliance inventory should be completely recovered by the fourth quarter of the next fiscal year. Directions Research the related generally accepted accounting principles and prepare a short memo that addresses the president's con cerns. Cite your references and applicable paragraph numbers. tory to market." While the Home Appliances Division had received a considerable amount of negative publicity relating to fires caused by defective switches in its products, the president felt that any reduction in the market