Management has adopted a policy of reporting its unsold inventory at the end of each year at the lower of LIFO cost or market. Which of the following statements is correct?

• Ending inventory will be correctly stated under any scenario when current replacement cost is less than cost.
• Ending inventory will be correctly stated when (i) current replacement cost is less than cost and (ii) replacement cost is less than net realizable value less a normal profit margin.
• Ending inventory will be correctly stated when (i) current replacement cost is less than cost and (ii) replacement cost is less than net realizable value and greater than net realizable value reduced by an allowance for an approximately normal profit margin.
• Ending inventory will be correctly stated when (i) current replacement cost is less than cost and (ii) replacement cost is greater than net realizable value.

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Management has adopted a policy of reporting its unsold inventory at the end of each year at the lower of LIFO cost or market. Which of the following statements is correct? Multiple Choice Ending inventory will be correctly stated under any scenario when current replacement cost is less than cost. Ending inventory will be correctly stated when (i) current replacement cost is less than cost and (ii) replacement cost is less than net realizable value less a normal profit margin. Ending inventory will be correctly stated when (i) current replacement cost is less than cost and (ii) replacement cost is less than net realizable value and greater than net realizable value reduced by an allowance for an approximately normal profit margin. Ending inventory will be correctly stated when (i) current replacement cost is less than cost and (ii) replacement cost is greater than net realizable value