Identifying a Loss in Applying Lower-of-Costor-Net Realizable Value

Ward Company has determined its December 31, 2020, inventory on a FIFO basis as $1,200,000. Information pertaining to that inventory follows.

Estimated selling price	$1,224,000
Estimated cost of disposal	60,000

At December 31, 2020, what does Ward recognize as a holding loss, if any, on inventory? Ward has not previously recorded an inventory holding loss. $Answer