Green Leaf Company had the following information available on December 31: $ Item Wheelbarrows Shovels Gloves Hoses Units 100 320 80 140 Cost $ 32.10 14.00 8.60 11.00 Total cost $ 3,210 4,480 688 1,540 $ 9,918 Market value 33.00 12.00 9.40 10.50 Total market value $ 3,300 3,840 752 1,470 $ 9,362 50) B 50) Management applies the LCM rule on the basis of inventory category and includes wheelbarrows and hoses in the large implement category and shovels and gloves in the small implement category. What is the write-down required? A) $864. (B) $576. C) $710. D) $556. 51) C 51) Management applies the LCM rule on the basis of individual inventory items. What is the write-down required? A) $576. B) $864. (C) $710. D) $556. 52) Management applies the LCM rule on the basis of the total inventory. What is the write-down required? A) $864. B) $710. C) $556. D) $576. 53) The logic behind the lower-of-cost-or-market rule is: A) Inventory that is unsalable should be written down to its replacement cost. B) An asset is not worth more than it would cost the owner to replace it. C) Inventory that is unsalable should be written down to zero (or its scrap value) D) Inventory gradually becomes obsolete