Question
Diego Corporation values its inventory at the lower of cost or net realizable value as required by GAAP. Diego has the following information regarding its
Diego Corporation values its inventory at the lower of cost or net realizable value as required by GAAP. Diego has the following information regarding its inventory.
| Historical cost | $100,000 | |
| Estimated selling price | 98,000 | |
| Estimated costs to complete and sell | 3,000 | |
| Replacement cost | 90,000 |
What is the amount for inventory that Diego should report on the balance sheet under the lower of cost or net realizable value method?
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International Accounting
Authors: Timothy Doupnik, Hector Perera
3rd Edition
978-0078110955, 0078110955
