Given the historical cost of product Dominoe is $56, the selling price of product Dominoe is $60, costs to sell product Dominoe are $2, the replacement cost for product Dominoe is $55, and the normal profit margin is 20% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method?

$55.

$56.

$46.

$58.

Cotton Hotel Corporation recently purchased Emporia Hotel and the land on which it is located with the plan to tear down the Emporia Hotel and build a new luxury hotel on the site. The cost of the Emporia Hotel should be

depreciated over the period from acquisition to the date the hotel is scheduled to be torn down.

capitalized as part of the cost of the new hotel.

written off as a loss in the year the hotel is torn down.

capitalized as part of the cost of the land