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Montana Co. has determined its year-end inventory on a FIFO basis to be $611,000. Information pertaining to that inventory is as follows: Selling price $630,000
| Montana Co. has determined its year-end inventory on a FIFO basis to be $611,000. Information pertaining to that inventory is as follows: |
| Selling price | $630,000 |
| Disposal costs | 37,000 |
| Normal profit margin | 77,000 |
| Replacement cost | 531,000 |
| What should be the carrying value of Montana's inventory? |
| a) | $531,000 |
| b) | $611,000 |
| c) | $516,000 |
| d) | $593,000 |
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