Crane Inc. has the following information related to an item in its ending inventory. Acer Top has a cost of $25, a replacement cost of $23, a net realizable value of $27 and a normal profit margin of $3. What is the final lower-of-cost-or-market inventory value for Acer Top? $24 O $23. $25 O $27 Current Attempt in Progress Which of the following is not an acceptable approach in applying the lower-of-cost-and net realizable value method to inventory? Inventory location Categories of inventory items O Total of the inventory. Individual item Net realizable value is O selling priceless costs to complete, sell, and transport acquisition cost plus costs to complete and sell. O selling price plus costs to complete and sell. O selling price Lower-of-cost-or-market O must be applied to major categories for taxes. O is most conservative if applied to major categories of inventory. O is most conservative if applied to individual items of inventory. is most conservative if applied to the total inventory. What is the rationale behind the ceiling when applying the lower-of-cost-or-market method to inventory? o Prevents overstatement of the value of obsolete or damaged inventories, O Prevents understatement of the inventory value. Allows for items to be valued at replacement cost. Allows for a normal profit to be earned