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Capital Pets has inventory that has shown a decrease in value. The company purchased the merchandise for $490, but expects it can only sell

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Capital Pets has inventory that has shown a decrease in value. The company purchased the merchandise for $490, but expects it can only sell the merchandise for $400. To make the sales, Capital Pets expects to incur advertising expenses of $40. Calculate the net realizable value for the merchandise inventory.

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The net realizable value NRV of the merchandise inventory can be calculated as follows NRV ... blur-text-image

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