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Gomez Co. uses the lower of cost or market method, and reports its inventory at the end of 2020 at net realizable value. Of the
Gomez Co. uses the lower of cost or market method, and reports its inventory at the end of 2020 at net realizable value. Of the following statements, which is correct?
Cost is less than NRV minus a normal profit margin.
Cost is greater than net realizable value.
Cost is less than net realizable value.
NRV is greater than replacement cost.
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