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If a firm is using the lower-of-cost-or-market rule and if a write-down entry is required, which of the following effects will apply? a) Net income

If a firm is using the lower-of-cost-or-market rule and if a write-down entry is required, which of the following effects will apply?

a) Net income will increase.

b) Gross margin will decrease.

c) Assets will decrease.

d) Gross margin will decrease and assets will also decrease.

e) Gross margin will decrease and net income will increse.

f) all of the above

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