Jessica sells two items, Item A and Item B. Below is the relevant data for Inventory Items A and B at December 31:

	Item A	Item B
Estimated Selling Expense	$2,500	$2,000
Cost	$3,750	$6,575
Normal Profit	$1,000	$2,250
Estimated Selling Price	$6,500	$10,000
Replacement Cost	$5,000	$6,000

Assume Jessica applies the lower of cost-or-NRV (net realizable value) method on an item-by-item basis. What is the value of Inventory that would be reported on Jessicas balance sheet at December 31st?

Question 3 options:

	$8,000
	$9,750
	$12,000
	$10,325

Question 4 (3 points)

Assume Jessica applies the lower of cost-or-NRV (net realizable value) method on an entire inventory basis. What is the value of Inventory that would be reported on Jessicas balance sheet at at December 31st?

Question 4 options:

	$9,750
	$10,325
	$8,000
	$12,000